Analyst: Precious Metals Hit by Multiple Headwinds

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Deep Tide TechFlow News, March 23 — According to Jin10 Data, Investing.com analyst Justin Low stated, "Precious metals have been hit by multiple adverse factors, and the current situation is becoming increasingly difficult.

The first adverse factor is a major shift in the overall market outlook. Over the past two years, precious metal prices have relied heavily on the key upward driver of central banks lowering interest rates. However, the situation has now completely reversed. As inflation concerns intensify, central banks are now forced to quickly shift to rate hikes. This also represents a significant change in trading sentiment for precious metals.

The second factor comes from the technical side, as gold and silver prices have both broken below their respective 100-day moving averages.

In addition, the third factor involves increased positions in bonds and stocks. Over the past year, precious metals have been a favored investment choice in leveraged trading.

But when we see such large-scale market sell-offs, especially when these sell-offs seem likely to have a very negative impact on the stock market, we must be highly alert to margin call requirements."

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