Gold slipped at the start of the week as traders booked profits after a rebound and a firmer U.S. dollar weighed on prices. Silver and platinum fell alongside it, and a hawkish Fed outlook remains the key headwind for precious metals.
Gold turned lower as traders took profits off the table following its recent rebound, with a stronger dollar adding to the pressure. A firmer dollar is bearish for gold and other dollar-denominated commodities because it makes them more expensive for buyers holding other currencies.
Falling yields fail to lift gold
Treasury yields moved lower, but the drop did not support gold. The yield on 2-year Treasuries declined toward 4.12%. The 10-year yield pulled back toward 4.48%.
The 30-year yield, by contrast, continues its attempts to test the psychologically important 5.00% level, a sign that bond traders remain sceptical about the long-term rate outlook in the U.S.
Gold and silver technical levels
On the charts, gold failed to settle above resistance at $4180 – $4200 and slipped back toward $4150. A settlement below $4150 would open the way toward support in the $4020 – $4040 range. To have a chance to gain upside momentum, gold needs to climb above the $4200 level, which would point toward the $4360 – $4380 resistance zone.
A separate technical read from analyst Jason Sen at Investing.com places the picture differently, noting that gold beat resistance at 4155/4165 and could target 4210/15 if it holds.
Silver also moved lower as the gold/silver ratio climbed back above the 67.00 level. According to FXEmpire, silver needs to settle above $62.00 to gain upside momentum in the near term, otherwise a drop below $61.00 points toward support at $56.00 – $57.00.
Fed outlook caps the metals
Platinum retreated too, part of a broad pullback across precious metals. FXEmpire notes that platinum will likely need strong catalysts to gain material upside, with the general trend still bearish. A strong dollar and a hawkish Fed policy outlook remain the key negative catalysts for the sector.
Sources: FXEmpire, Investing.com
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