Gold price weaker as bond yields continue to rise

By Kitco News / October 11, 2021 / www.kitco.com / Article Link

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here! (Kitco News) - Gold and silver prices aremodestly down in early U.S. trading Monday. Rising government bond yieldsrecently and an appreciating U.S. dollar on the foreign exchange market arebearish elements that are keeping buyers of the safe-haven metals timid. Decembergold futures were last down $2.40 at $1,755.00. December Comex silver was last down$0.125 at $22.58 an ounce. Globalstock markets were mixed in overnight trading. The U.S. stock indexes are pointedto weaker openings when the New York day session begins. The U.S. government isclosed for the Columbus Day holiday Monday, including the U.S. Treasury markets.That is likely to make for quieter trading in the U.S. today. Traders andinvestors worldwide are tentative to start the trading week. Supply-chainbottlenecks and rising energy prices are prompting worries about slowing globaleconomic growth. Goldman Sachs over the weekend cut its U.S. economic growthforecasts for this year and next. Some European countries are worried about havingenough energy for winter heating. These concerns followed an uninspiring U.S.employment report released Friday morning.Thekey outside markets today see the U.S. dollar index firmer. Nymex crude oilfutures are solidly up, hit a seven-year high overnight, and are trading around$81.50 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching1.612%. Bond yields are on the rise, which has heightened fears of risinginflation or even stagflation, which is a combination of rising prices and slowingeconomic growth. U.S.economic data due for release Monday includes is light and includes theemployment trends index.Technically,December gold futures bears still have the slight overall near-term technical advantage.However, a four-week-old downtrend on the daily bar chart has been negated. Bulls'next upside price objective is to produce a close above solid resistance at $1,800.00.Bears' next near-term downside price objective is pushing futures prices belowsolid technical support at the September low of $1,721.10. First resistance is seenat the overnight high of $1,761.10 and then at $1,771.50. First support is seenat $1,750.00 and then at last week's low of $1,745.40. Wyckoff's Market Rating:4.5The silver bears have the firm overall near-term technicaladvantage. Silver bulls' next upside price objective is closing December futuresprices above solid technical resistance at $24.00 an ounce. The next downsideprice objective for the bears is closing prices below solid support at theSeptember low of $21.41. First resistance is seen at the overnight high of $22.825and then at $23.00. Next support is seen at $22.385 and then at $22.50. Wyckoff'sMarket Rating: 2.5. By Jim Wyckoff For Kitco NewsFollow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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