The analyst estimated the impact of the weakening dollar on the precious metals market in December

The situation on the precious metals market in December continues to be shaped by external monetary factors, primarily the general weakening of the dollar due to the Federal Reserve's interest rate cut and expectations of further easing of the monetary policy of the American regulator. This was stated by Alexander Schneiderman, head of Alfa-Forex's customer support and sales department, in an interview with Izvestia on December 25.

According to him, in conditions of declining profitability of dollar-denominated instruments, investors traditionally increase their interest in protective assets such as gold and silver, which supports steady demand for precious metals.

"Against this background, the market demonstrates the continuation of a pronounced long-term upward trend. Gold and silver stock quotes continue to move within the framework of the established growing dynamics, without showing signs of a structural reversal," said Schneiderman.

As the expert noted, while maintaining the current macroeconomic conditions and the Fed's soft rhetoric, the targets within this trend are shifting to levels of about $4.8 thousand per troy ounce of gold and $82 per ounce of silver. Thus, the favorable external environment continues to support the investment attractiveness of precious metals.

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Schneiderman told Izvestia on December 18 that the rise in silver prices was due to macroeconomic factors, not speculative movements. It is associated with a change in expectations regarding the monetary policy of the US Federal Reserve. According to the expert, against the background of the stabilization of the foreign exchange market and a decrease in the volatility of the ruble, many investors are beginning to shift their interest towards precious metals.

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