precious metals

Gold and silver prices took a plunge today, with the former down 3% and the latter falling some 5% by mid European session, before bouncing off their lows. The losses come after the metals remained largely supported until last week, despite the big dollar rally and surging bond yields as we have seen in recent weeks. But it simply got too much, and the metals succumbed to pressure today.

Gold has dipped below its three-month uptrend, while Bitcoin has pulled back from a nine-month high as U.S. bond yields test levels last seen in 2004 and 2007. Risks build as Fed rate-hike expectations remain above 70%, while the Dollar Index holds near yearly highs.

As we headed towards the latter stages of Q3 and into Q4, the Fed had just hiked rates in a hawkish FOMC meeting, while the likes of the ECB and BoJ had also tightened their respective policies. Oil prices remained elevated amid the prolonged US-Iran conflict. Meanwhile, bond yields were breaking out, and the dollar was higher across the board. Yet, remarkably, gold was still holding in the positive territory for the third quarter, even if it had weakened somewhat in September.

Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.

The trading week continues, and for now gold remains under notable pressure in the short term. This can be seen in the performance of XAU/USD over the last three trading sessions, where the metal has declined by more than 2.00%, bringing a bearish bias back into focus after it had lost momentum in recent weeks.

Gold has started the new week on the back foot after ending a three-week losing streak with gains over the final two sessions of last week. The rebound came as the dollar’s rally stalled and oil prices retreated, while a broader improvement in risk appetite lifted major equity indices and extended Bitcoin’s recovery to $85,000. For now, consolidation is the name of the game, but if the US dollar, bond yields or oil prices start moving higher again then this will negatively impact the price of gold.

The gold price outlook is holding a bullish structure as crude oil falls more than 8% from monthly highs and U.S. Treasury yields stall.

Gold prices rallied sharply today, reversing yesterday’s losses and some. It is quite common for markets to reverse the FOMC-related moves within 24 hours and yet again this has proven to be the case. Now that we are back to pre-FOMC levels, the key question is where do we go from here? While gold may have formed a technical bullish signal today, the fundamental backdrop remains tied pretty much to the same factors that have been weighing on prices lately...

Gold continues to face challenging conditions in the short term, with the precious metal already recording three consecutive losing sessions and posting a decline of nearly 2.3%. This price action continues to highlight a bearish bias that has become increasingly relevant within the market.

Gold, Silver, DXY Outlook: Charts test defining support levels as crude oil prices hold above $100, U.S. Treasury yields move higher and hawkish FOMC risks come into focus. Key scenarios to watch.

Gold price outlook has turned defensive as rising bond yields lift the cost of holding a metal that pays no interest and the dollar firms.

Gold has fallen relatively sharply in the first half of today’s session. Hardly a surprise, truth be told. The ongoing macro backdrop is bearish for gold and risk assets in general. Rising oil prices are continuing to pile pressure on government bonds, causing their yields to increase. Rising yields, in turn, increase the opportunity cost of holding assets that pay zero interest, not to mention storage and insurance costs.