What is the next step for gold and silver? Bybit emphasizes crucial market factors

In the coming months, precious metals such as gold and silver will be crucial, because the market will probably move in a bullish or bearish. Regardless of the direction of the market, an analysis of the Crypto Exchange Bybit made clear that macro -economic factors will play an enormous role in the outcome.

By one report Bybit, written in collaboration with the Forex Market Insights platform Fxstreet, believes that gold and silver can experience a bull run in the coming weeks.

Fed can lower the interest rates

The report emphasizes that interest decisions by the Federal Reserve will significantly influence the price of precious metals. Although gold has reached new highlights, Silver still has more advantage. Anyway, on-chain statistics suggest an important space for meetings in both assets.

Two days ago, Golden (ATH) hit $ 3,508 per ounce, and surpassed his earlier record of $ 3,500 on April 22. At the time, the increase could be attributed to the market uncertainty caused by the rates of President Donald Trump. This time, however, analysts have bound Gold’s revival to the expectations of a potential interest rate reduction.

The Fed last reduced rates in December; If the agency reduces the rates this month, this would mark the first time this year. There are expectations that the rates will be reduced from 4.5% to 4.25%, and the figure could further fall as extra cutbacks in November and December.

On the edge of a Bull Run

Gold has already risen 32% this year, but analysts have set an objective of $ 4,000 at the end of the year. If gold reaches that level, it would have risen 14% from its current price. Silver has performed better than gold, with 40% to date (YTD). However, the precious metal still acts slightly above $ 40, which is lower than the $ 50 ATH that was registered in April 2011. The active 25% must rise to visit the $ 50 again and possibly surpass.

These meetings will be possible if the FED reduces the rates this month and will follow comparable steps in November and December. When regulatory authorities lower interest rates, money tends to leave banks and bonds and go to alternative value of value. These alternatives include cryptocurrencies, shares and metals.

Although gold does not offer yields, it becomes one of the most attractive Safe-Haven assets when the rates fall. Moreover, the wider macro -economic environment also promotes metals, especially when global debt levels rise and the concerns about tax deficits and inflation exist.