Gold prices have dropped over 1.5% to $4,500 per ounce, while silver has seen a sharper decline of nearly 5% to $74 per ounce, driven by a stronger US dollar and rising bond yields. The dollar’s strength is underpinned by robust US economic data, high oil prices, and growing geopolitical tensions in the Middle East, which are beginning to affect inflation expectations. Notably, yields on 30-year US Treasuries have reached their highest levels since 2007, further supporting the dollar.
The technical outlook for gold indicates that a breach below the 200-session exponential moving average at approximately $4,330 could trigger a downside breakout, while a recovery above $4,750 might suggest a return to bullish momentum. For silver, the key support level is around $70 per ounce, also near its EMA200.
Market participants should monitor these critical levels closely, as movements in gold and silver could reflect broader market sentiment amid ongoing economic and geopolitical uncertainties.
Source: xtb.com