Gold Nears ‘Ten Straight Days of Decline,’ Liquidity Squeeze to Dominate Short-Term Trend
BlockBeats News, March 24th, against the backdrop of escalating tensions in the Middle East, the surge in energy prices has triggered a chain reaction that is putting pressure on the precious metals market. Spot gold once fell by about 2% during the session, although it briefly rebounded above $4400 during the European session, it still remains in a weak range overall. If it falls again on the same day, it will set a record for the 10th consecutive trading day decline.
Market analysis points out that the current decline in gold is not a failure of traditional logic, but a typical dominance of "liquidity squeeze." As oil prices rise, boosting inflation expectations, investors are forced to sell off highly liquid assets, including gold, to offset losses in stocks, bonds, and other assets or to meet additional margin requirements. This "selling of quality assets to cover losses" behavior is more common in extreme volatility environments.
Previously, Trump announced a delay in the strike on Iran's power grid, briefly providing support for the gold price. However, Iran subsequently sent a tough signal, coupled with news that U.S. allies may be involved in the conflict, further intensifying market uncertainty. At the same time, shipping in the Strait of Hormuz has been disrupted, further magnifying energy supply risks.
Institutional views generally believe that gold will remain under pressure in the short term. Standard Chartered Bank pointed out that after intense market volatility, a 4 to 6-week adjustment period for gold is not uncommon; Swiss Re analysts stated that during major crises, gold is often used as an "ATM" to quickly raise funds to meet liquidity needs.
From a historical perspective, whether it was the 2008 financial crisis or the early stages of the 2022 Russia-Ukraine conflict, gold has experienced similar phased pullbacks after a rise in risk aversion sentiment. Despite short-term price pressure, analysts generally believe that the long-term logic supporting gold—including geopolitical risk, global inflation pressures, and continued buying by central banks worldwide—has not undergone fundamental changes.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
3 Best Crypto Stocks with 120%+ Upside, According to Analysts
Interpretation - What is the low-frequency spectrum obtained by SpaceX for Starlink Mobile?
Harshita Mary Varghese, Reuters, October 9 - SpaceX SPCX.O has agreed to acquire a portfolio of low-band spectrum licenses covering the entire United States, in a deal reportedly valued at $8 billion. The company is seeking to expand its business beyond satellite internet and become a major competitor in the U.S. mobile market. SpaceX revealed its plans to enter the mobile service sector during its first earnings call in August. This announcement briefly weighed on the company’s stock price, and shares of the three major U.S. wireless carriers—AT&T, T-Mobile, and Verizon—were also affected as investors assessed the potential competitive threat. What is low-band spectrum? Low-band spectrum refers to radio waves that travel further and penetrate buildings better compared to higher frequencies, making them suitable for wide-area mobile network coverage. In contrast, mid-band and high-band spectrums can transmit more data at faster speeds but have a smaller coverage area. SpaceX has agreed to purchase up to 14 MHz of paired 800 MHz low-band spectrum licenses from Grain Management and plans to develop a hybrid architecture for Starlink Mobile, combining terrestrial infrastructure with satellite connectivity. How is the U.S. spectrum licensing system structured? Commercial spectrum is a scarce resource in the U.S., regulated by the Federal Communications Commission (FCC), which typically allocates licenses for specific frequencies and geographic areas via auctions or other authorization processes. License holders must comply with technical rules and deployment requirements, and transfers of licenses usually require regulatory approval before obligations are fulfilled. The spectrum license deal recently struck by SpaceX is pending FCC approval. Which low-band spectrum do the three major carriers hold? AT&T’s low-band spectrum includes the 700 MHz and 850 MHz bands, as well as 600 MHz spectrum licenses acquired this July through the purchase of EchoStar. Verizon holds spectrum in the 700 MHz and 850 MHz bands, while T-Mobile’s low-band holdings include 600 MHz and 700 MHz spectrum. What are the plans for STARLINK MOBILE? The company plans to integrate these spectrum licenses into its next-generation satellite system, while also deploying terrestrial radio equipment and antennas on communication towers and rooftops. The FCC this week approved Starlink Mobile’s application for its second-generation (Gen2) satellite constellation, authorizing SpaceX to launch 15,000 satellites globally optimized for the 2 GHz spectrum.
Japanese Yen: Choppy trade inside defined range – UOB
Crypto prices
More
