Gold Retreats As 30-Year Yield Hits 5.58%
Gold is under strong pressure amid sell-off in global debt markets, which has pushed bond yields to new highs.
The yield of 2-year Treasuries climbed above the 4.91% level, while the yield of 10-year Treasuries settled near 5.24%. The yield of 30-year Treasuries tested the 5.58% level as bond traders worried about long-term sustainability of U.S. finances.
According to FedWatch Tool, the probability of a rate hike at the next meeting in October has increased to 70.3%. Traders expect that the federal funds rate would be raised by 100 bps by the end of 2027. Expectations of a series of rate hikes put significant pressure on gold that pays no interest.
U.S. dollar gained some ground against a broad basket of currencies as forex traders focused on developments in debt market. Stronger dollar put additional pressure on gold in today’s trading session.
I’d note that one of the reasons for the sell-off in gold markets could be technical. The strong pullback in debt markets could have forced investors to raise cash elsewhere, forcing them to sell gold.
Currently, gold is trying to settle below the support level at $4160 – $4180. In case gold manages to settle below the $4160 level, it will head towards the next support, which is located in the $4000 – $4020 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
Silver Dives As Traders Focus On Rising Yields
Silver is under strong pressure as gold/silver ratio climbed towards the 67.50 level. In case gold/silver ratio settles above the 50 MA at $67.67, it will move towards the 69.00 level, which will be bearish for silver.
Silver settled below the 50 MA at $63.86 and is trying to settle below the support level at $61.00 – $62.00. If silver settles below the $61.00 level, it will head towards the next support, which is located in the $56.00 – $57.00 range.
On the upside, a move above the 50 MA will open the way to the test of the resistance level at $65.00 – $66.00.
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See all Gold forecastsPlatinum Tests Support At $1700 – $1720
Platinum pulled back amid broad sell-off in precious metals markets, which was triggered by rising yields. Palladium markets were down by -3.7%, which was bearish for platinum.
Oil prices moved away from session highs as Saudi Arabia restarted the key East-West pipeline, but this move did not provide any support to platinum.
Platinum attempts to settle below the support level at $1700 – $1720. If platinum manages to settle below the $1700 level, it will head towards the next support at $1600 – $1620. A move below the $1600 level will open the way to the test of the $1520 level.
On the upside, platinum needs to settle back above the 50 MA at $1749 to have a chance to gain upside momentum in the near term. In this case, platinum will head towards the resistance level at $1780 – $1800.
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