📉Gold prices drop by more than 2%, while US dollar appreciates
Precious metals are trading under heavy selling pressure today. In the afternoon, gold fell by more than 2% and the price is approaching $1750 an ounce. Even more intense sell-off can be seen on the silver market, where declines reached almost 5%!
Today's negative sentiment is partly due to the strengthening of the US dollar and the rise in US Treasury yields. The strong reading of US retail sales for August contributed to this situation. Better than expected data means potentially higher pressure on the US central bank to finally start the process of reducing the asset purchase program (tapering). Weekly jobless claims report was slightly disappointing, but showed that the labour market remained relatively resilient despite the recent hurricane Ida. The Philadelphia Fed index for September surprised positively (30.7 vs. 18.9 forecast). The American economy therefore remains relatively resilient, also in the face of the Delta variant. During today's session one can see that investors are leaning towards an earlier introduction of the tapering process, which is definitely not in favor of precious metals.
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Gold fell sharply today and the price is approaching $ 1750 an ounce - it’s lowest level in over a month. First line of support is located around 78.6% Fibonacci retracement of the last upward wave, while the key level of support lies around $ 1720 per ounce, i.e. the lows from the first half of August. Source: xStation5
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