🔽 Precious metals sink as yields resume climb
Silver prices are taking a dive at the beginning of a new week. While declines can be spotted all across the precious metals market today, silver is a clear underperformer among the group with an over-2% drop at press time. Gold is down 0.8%, platinum drops 0.5% and palladium is down 1%. End of the quarter did not bring an end to sell-off on the bond market and Treasuries remain under pressure during the first trading day of October. As a result, yields continue to climb with 10-year US Treasury yield climbing 6 basis points today, to 4.63%. This is a fresh multi-year high and suggests that pull back in yields that we have observed in the second half of the previous week was just a correction, most likely triggered by some safer repositioning for a potential but rather improbable US government shutdown risk. As shutdown was avoided with 45-day stopgap bill, sell-off on the bond market resumed.
Taking a look at SILVER chart at D1 interval, we can see that a big gains that the commodity was making during Friday was completely erased before the session end and SILVER dropped below a key mid-term support zone in the $22.40 per ounce area, where the upward trendline was also located. . A point to note is that bulls failed in the $23.40 area, where 50- and 200-session moving average can be found, which is an important technical signal. Technical picture is becoming more and more bearish. However, there is one more important support ahead - lower limit of the Overbalance structure at $21.35 per ounce - and a break below it would be another confirmation of a bearish trend reversal.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
