Why do many traders incur losses when investing in gold and silver markets?What are the key factors behind the sudden fluctuations in gold and silver prices?

🔲 We all know that when the world moves toward an uncertain future, gold and silver are considered safe-haven assets. Usually, when there is a possibility of a major war or when a conflict actually begins, the prices of gold and silver tend to rise We all know that when the world moves toward an uncertain future, gold and silver are considered safe-haven assets. Usually, when there is a possibility of a major war or when a conflict actually begins, the prices of gold and silver tend to rise Continues. As long as there is no sign of the war ending, their prices are generally expected not to fall.

Reasons: 

◑ Gold and silver have real intrinsic value.

◑ They are considered safe assets.

◑ They are more reliable compared to paper currencies.

However, why are we seeing the opposite this time?

◻️ Apart from war, the prices of gold and silver are also influenced by the US dollar, politics, and market manipulation.

✔️ When the US Federal Reserve lowers interest rates, the value of the dollar declines, which usually causes gold and silver prices to rise.

✔️ On the other hand, when the Federal Reserve increases interest rates, people tend to invest in the dollar, resulting in a drop in gold and silver prices.

✔️ Often, prices are also controlled or influenced through market manipulation.

Impact of Interest Rates:

When US interest rates rise, gold and silver prices fall.

When US interest rates fall, gold and silver prices rise.

Key Point: The main drivers behind the rise and fall of gold and silver prices are US interest rates, geopolitics, and market manipulation.

Now, let’s answer the main question:

Why are gold and silver prices fluctuating—going up and down repeatedly—even after the war has started?

In my opinion, there are three main reasons:

◑ Rising oil prices.

◑Unpredictable statements by US President Donald Trump.

◑Geopolitics and market manipulation.

In simple terms, the US President often makes inconsistent statements—one thing in the morning, another in the afternoon, and something different at night.

Additionally, attacks on oil depots across Iran and the Middle East, along with the potential closure of the Strait of Hormuz, have created a global oil crisis. As you know, all industries and transportation systems depend heavily on oil. As oil prices continue to rise, the demand for the US dollar is also increasing.

It is also known that the United States is one of the largest holders of oil reserves. It has control over oil fields in various parts of the world, continuously extracting oil and selling it internationally at higher prices.

Moreover, due to disruptions like the Strait of Hormuz situation, rising oil prices are helping the US offset war-related expenses, while keeping the dollar relatively stable. With interest rates remaining unchanged, even though gold and silver are safe-haven assets, their prices are not increasing significantly and are sometimes declining. As a result, ordinary investors are facing losses.

However, an important point to note: Gold and silver prices cannot be controlled or suppressed for long through manipulation. It is expected that within this year, their prices will recover and rise again. As long as there is no sign of the war ending, their prices are generally expected not to fall.

Reasons:

 ◑ Gold and silver have real intrinsic value.

◑ They are considered safe assets.

◑ They are more reliable compared to paper currencies.

However, why are we seeing the opposite this time?

◻️ Apart from war, the prices of gold and silver are also influenced by the US dollar, politics, and market manipulation.

✔️ When the US Federal Reserve lowers interest rates, the value of the dollar declines, which usually causes gold and silver prices to rise.

✔️ On the other hand, when the Federal Reserve increases interest rates, people tend to invest in the dollar, resulting in a drop in gold and silver prices.

✔️ Often, prices are also controlled or influenced through market manipulation.

Impact of Interest Rates:

➡️ When US interest rates rise, gold and silver prices fall.

➡️ When US interest rates fall, gold and silver prices rise.

Key Point: The main drivers behind the rise and fall of gold and silver prices are US interest rates, geopolitics, and market manipulation.

Now, let’s answer the main question:

Why are gold and silver prices fluctuating—going up and down repeatedly—even after the war has started?

In my opinion, there are three main reasons:

Rising oil prices

Unpredictable statements by US President Donald Trump

Geopolitics and market manipulation

In simple terms, the US President often makes inconsistent statements—one thing in the morning, another in the afternoon, and something different at night.

Additionally, attacks on oil depots across Iran and the Middle East, along with the potential closure of the Strait of Hormuz, have created a global oil crisis. As you know, all industries and transportation systems depend heavily on oil. As oil prices continue to rise, the demand for the US dollar is also increasing.

It is also known that the United States is one of the largest holders of oil reserves. It has control over oil fields in various parts of the world, continuously extracting oil and selling it internationally at higher prices.

Moreover, due to disruptions like the Strait of Hormuz situation, rising oil prices are helping the US offset war-related expenses, while keeping the dollar relatively stable. With interest rates remaining unchanged, even though gold and silver are safe-haven assets, their prices are not increasing significantly and are sometimes declining. As a result, ordinary investors are facing losses.

However, an important point to note: Gold and silver prices cannot be controlled or suppressed for long through manipulation. It is expected that within this year, their prices will recover and rise again.