Karl Marx once quoted, “Although gold and silver are not by nature money, money is by nature gold and silver.” It is why investors willing to diversify their portfolio often buy digital gold. A closer look at last week’s gold and silver prices will help one in making wise e-gold investments.
Gold and silver prices began diverging last week, with the precious yellow metal becoming the underperformer. Its price fell and silver’s price increased. The primary reason behind the diverging paths of gold and silver prices is the gold/silver ratio. This method is generally used by traders to determine a metal’s value to the other. The fundamental reason for the divergence is the individual demand and applications of gold and silver.
Diverging Gold/Silver Ratio
Though generally gold and silver prices move together, they also diverge. One of the metals outperform the other when GLD (Gold Trust) and SLV (Silver Trust) move is different directions. Last week silver outperformed gold. Spot gold prices saw losses of about 0.5% and reached 2 months low of almost $1984/oz. It was the second consecutive weekly decline. MCX gold prices also fell by almost 0.6% and touched a week’s low of approx ₹61200 per 10 gm. On the other hand, silver prices were slightly higher and ended at a hike of around 1.89%.
The Latest US Federal Reserve Interest Rate Decision
If you plan to buy digital gold, a closer look at the latest FED interests and FED data will also be beneficial. FOMC meetings are scheduled to review the existing financial and economic conditions, choose a suitable stance of monetary policy, and influence traders’ vote on where to set interest rates.
The latest FED Interest Rate Decision was set at 5.50% for actual, forecast and previous.
It is estimated that monetary policies will be more hawkish than expected which might be good for currency. The meeting is generally held 3 weeks after the Federal Funds Rate is announced.
Fluctuating Gold Prices – Perfect Time for E-Gold Investment
Gold prices fell last week and the number of investors willing to buy and sell digital gold increased. If you are also planning to invest in E-Gold, look no further than myDigiGold. It is a widely preferred digital platform by Senco Gold & Diamonds for gold transactions where you can buy and redeem E-gold at the best price. You can visit sencogoldanddiamonds.com or any of our 150+ Senco stores to redeem the accumulated gold anytime and anywhere.
Disclaimer: The data provided on this blog is for general informational purposes only. The data is based on our research and understanding, and we cannot guarantee its accuracy or reliability.