While equities have stumbled this afternoon after weeks of gains, the rally in precious metals appears to be heating up once more, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks drift lower in Europe and the US
“After weeks of gains, it is not surprising to see stocks catch their breath in afternoon trading. Things are quiet out there, perhaps a little too quiet, and more than a few investors will be casting a nervous eye on the Vix, which has reached its lowest level since January 2020. Nonetheless, barring a sudden handbrake turn from the Fed this month, the backdrop of falling yields and rising stocks could be with us well into December.”
Gold and silver make headway
“Equities might have seen their progress slow, but gold and silver continue to reap the rewards of a weakening dollar. This comes, somewhat ironically, as bets on lower inflation and rate cuts next year become the standard view, a useful corrective to the idea that precious metals do best during periods of high inflation.”
Reprinted from FXStreet，the copyright all reserved by the original author.
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