Oil futures surged nearly 3% today, exerting downward pressure on precious metals prices and prompting profit-taking following a recent rally in the metals market. Concurrently, U.S. Treasury yields increased by over 2 basis points for both 10-year and 5-year bonds, while the U.S. dollar index strengthened to 98.55, reflecting a robust recovery from earlier lows.
Gold has retreated from approximately $4,900 to around $4,600 per ounce, with analysts suggesting potential support levels could drop to $4,300–$4,400 if the trend continues. Silver has seen a significant decline of 12% from its recent highs, now trading near $73 per ounce, well below January’s peak of $120. Meanwhile, oil prices have stabilized around $103.7 per barrel after a sharp rebound from $83, with the 71.8 Fibonacci level acting as a key resistance point.
Market professionals should closely monitor these developments, particularly the interplay between rising oil prices and the strength of the U.S. dollar, as they could signal further volatility in both precious metals and broader market sentiment.
Source: xtb.com