Gold plunges below $4,430, silver drops below $70

Ask AI · How will a weakening U.S. dollar credit profile drive the outlook for gold prices?

Reporter | Zeng Jingjiao, trainee reporter Lin Qianwei

Editor | Xie Zhen

On the afternoon of March 26, gold and silver prices saw a rapid plunge. By 14:00, spot gold was quoted at $4,433 per ounce, once falling below $4,430 during the day, down more than 1.5% on the day; spot silver fell below the $70 level and was last at $69.54 per ounce, down more than 2% on the day.

International oil prices continued to rise. As of 14:00, WTI crude was up more than 2%, trading above $92 per barrel; ICE Brent was up nearly 2%, approaching $99 per barrel.

Cryptocurrencies broadly declined. Among them, Bitcoin fell below the $70,000 mark, down more than 1.5% on the day, and in the past 24 hours, more than 80,000 people worldwide in the market were liquidated.

Tensions in the Middle East have continued to be volatile. According to a report by Xinhua News Agency, in the early hours of March 26, the Israel Defense Forces issued a statement saying that the Israeli military launched a large-scale strike against “Iranian regime infrastructure” in multiple regions, including Iran’s central Isfahan province. The statement did not yet provide further details. It remains unclear whether the targets of the Israeli strike include the Natanz nuclear facility.

Also, citing the Iranian Tasnim news agency, Xinhua reported on the 25th that an Iranian military source who asked not to be named said that if the other side attempts to launch ground operations against Iranian islands or the mainland, or applies pressure on Iran in the Persian Gulf and the Gulf of Oman through naval actions, Iran will open a new front in the Strait of Hormuz.

Looking ahead to the future of gold prices, China CITIC Securities noted that after past Middle East conflicts, the medium-term trend of gold prices still depends on factors related to U.S. dollar credit and liquidity. Looking at this round of conflict, it is expected that the continuation of two major trends—looser liquidity and weakening U.S. dollar credit—will continue to push up gold prices. At the same time, historically, advantages in valuation or percentile ranks of stocks would strengthen the upward room for the gold sector.

(Statement: The content is for reference only and does not constitute investment advice. Investors act at their own risk.)

Produced by | 21st Century Business Herald 21 Finance Client