Gold holding above $2,000
Gold surged higher yesterday, and this morning it broke above $2,050 to hit its highest level since early May. This was just after gold made a fresh all-time intra-day high, just above $2,080. It’s now possible that gold is on course to take out its record closing high of $2,070 from August 2020.
This rally in precious metals has been a long time coming. It could be that the multi-year consolidation is now over, triggered by a sharp pull-back in bond yields and dollar weakness. This morning the US 10-year Treasury yield fell to 4.28%, a long way below the 5% level hit just over a month ago, as investors continue to speculate that the next interest rate move from the Federal Reserve will be a cut. The CME FedWatch tool predicts that the first 25 basis point reduction could happen by Spring next year. There’s good news for silver bulls as well. Yesterday silver broke above $25, and while it has pulled back since then, sell-offs have been shallow so far, indicating buyer interest.
Again, it will be important for gold to hold above $2,000 on any future pull-back, while $24 per ounce is the key support level for silver. The MACD for gold on the 4-hour chart isn’t particularly stretched to the upside, so there’s still room for this rally to continue. But there’s always the risk of a sharp downside move to try and unseat those riding the bull. In particular, longs should keep an eye on US Treasury yields and the dollar, as a rally in these could test the downside pattern.
This rally in precious metals has been a long time coming. It could be that the multi-year consolidation is now over, triggered by a sharp pull-back in bond yields and dollar weakness. This morning the US 10-year Treasury yield fell to 4.28%, a long way below the 5% level hit just over a month ago, as investors continue to speculate that the next interest rate move from the Federal Reserve will be a cut. The CME FedWatch tool predicts that the first 25 basis point reduction could happen by Spring next year. There’s good news for silver bulls as well. Yesterday silver broke above $25, and while it has pulled back since then, sell-offs have been shallow so far, indicating buyer interest.
Again, it will be important for gold to hold above $2,000 on any future pull-back, while $24 per ounce is the key support level for silver. The MACD for gold on the 4-hour chart isn’t particularly stretched to the upside, so there’s still room for this rally to continue. But there’s always the risk of a sharp downside move to try and unseat those riding the bull. In particular, longs should keep an eye on US Treasury yields and the dollar, as a rally in these could test the downside pattern.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.