BlockBeats News, April 14th, Heraeus Precious Metals Analyst’s latest report pointed out that both gold and silver formed a bearish engulfing pattern on the March monthly candlestick chart — opening higher than the previous month but closing lower, a signal that aligns with the end of the January bull market and the timing of the US military action against Iran. The analyst warned that before the bull market resumes, the precious metals market may need to undergo a long period of consolidation and sideways trading lasting for several months.
On the gold side, the last time a similar bearish engulfing pattern appeared was in April 2022, after which the gold price fell from $2000 per ounce all the way to $1600 per ounce, experiencing six consecutive months of decline. Heraeus stated that if the recent uptrend reverses, the next key support level is near the March low, around $4100 per ounce. However, the analyst also pointed out that rising inflation and declining real interest rates will support gold demand, and the ongoing bull market is likely to absorb the current adjustment.
Regarding central bank gold purchases, central banks around the world overall continue to maintain a net buying trend, with a net purchase of 27 tons in February, higher than the 5 tons in January. The Polish central bank increased its holdings by 20.2 tons in February, the largest single-month increase in nearly a year; Uzbekistan and Kazakhstan also increased their holdings; while Turkey and Russia were major sellers.
On the silver side, Perth Mint’s silver bar and coin sales volume in March dropped to 976,000 ounces, significantly down from the two-year high of nearly 2 million ounces in February; the US Mint’s American Silver Eagle sales also slightly decreased from 1.7 million ounces to 1.6 million ounces in March, but the total sales volume in the first quarter of this year exceeded 8.1 million ounces, a significant increase from 5.3 million ounces last year.
