Gold and silver see more punishment from higher bond yields

Gold and silver see more punishment from higher bond yields

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(Kitco News) – Gold and silver prices fell midday on Monday in US trading, but were up from their previous sharp losses. Rising bond yields once again hit precious metals. The sharp drop in crude oil prices today is also negative for the metals markets. June gold futures fell $18.40 at $1,864.10, and May Comics silver last fell $0.367 at $22.00 an ounce.

A feature that emerged in the market early this week was the rising bond yields. The yield on the 10-year US Treasury is at its highest level in almost four years and is currently 3.091%. Traders and investors fear global price inflation will spiral out of control. Historically, problematic price inflation has been bearish for paper assets such as stocks and bonds, and bullish for hard assets such as commodities and real estate. Gold and silver traders are currently focusing on the downsides of rising bond yields, but don’t be surprised at some point in the not-too-distant future to see that focus change to the upsides of rapidly rising inflation.

Most global stock markets fell overnight. US stock indices drop sharply at midday. The S&P 500 and Nasdaq futures markets hit 12-month lows overnight. Today’s safe-haven metals are ignoring the upside erosion of the US stock market. The bears on the US stock index have a strong technical advantage in the near term as prices are in downtrends on the daily bar charts.



Today the major overseas markets are seeing a sharp drop in the NYMEX crude oil futures price and are trading around $104.50 per barrel. Reports said that the proposed Russian oil embargo by European Union countries faces some obstacles. Meanwhile, the US dollar index was weaker in the middle of the day after climbing to a 20-year high overnight.

Technically speaking, June gold futures are seeing a bearish price trendline two months ago on the daily bar chart. Bears have the overall technical advantage in the near term. The next bullish price target for the bulls is to produce a close above the solid resistance at $1,900.00. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,800.00. We see the first resistance at $1,875.00 and then the day’s high at $1,886.60. First support is seen at the day’s low at $1,854.80 and then the May low at $1,849.70. Wyckoff Market Rating: 4.0.

24 hour live silver chart [ Kitco Inc. ]

Silver futures prices for July hit a five-month low today. There is a sharp downward trend in the price on the daily bar chart. Silver speculators have a strong overall technical advantage in the near term. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $23.00 an ounce. The bears’ downtrend price next target is a price close below the strong support level at the December low of $21,565. First resistance is seen at the day’s high at $22,395 and then at Friday’s high at $22,665. The next support is seen at today’s low at $21.665, then $21.565. Wyckoff Market Rating: 2.0.

Copper in New York closed in July down 695 points at 419.95 cents today. Prices closed near the session high today after hitting a five-month low early on. Copper bears have a strong overall technical advantage in the near term. There is a sharp bearish price trend line on the daily bar chart. The next bullish price target for the copper bulls is to push and close prices above strong technical resistance at last week’s high of 444.00 cents. The bears’ downtrend price next target is a price close below strong technical support at the December low of 411.05 cents. We notice first resistance at today’s high at 424.50 cents, then at 430.00 cents. The first support appears at 415.00 cents, then the daily low at 412.40 cents. Wyckoff Market Rating: 2.0.

Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

2022-05-09 16:31:00

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