📉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.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
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
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
