🔼 Precious metals benefit from weaker USD
Sell-off on the US dollar market was resumed today after a brief upward correction earlier this week. USD is one of the weakest G10 currencies today, and weakens against all major peers except for JPY. Situation is somewhat interesting as a drop in USD comes in spite of a pick-up in US Treasury yields. 10-year US yield sits at 4.78%, up almost 8 basis points on the day.
Precious metals traders seem to cherish weaker USD and ignore pick-up in yields. All precious metals are trading higher on the day with SILVER gaining almost 2% while PLATINUM and PALLADIUM trade over 1% higher. GOLD can be seen as a laggard with a 0.3% gain at press time. Precious metals traded even higher earlier today, but part of those gains were erased after GOLD failed to break above $2,000 per ounce.
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Create account Try a demo Download mobile app Download mobile appTaking a look at GOLD at H1 interval, we can see that the precious metal made another attempt at breaking above the psychological $2,000 per ounce zone earlier today, but has once again failed to deliver a sustained breakout. GOLD pulls back after failing to break above the upper limit of a short-term triangle pattern. Should we see pullback deepen, the first level to watch will be $1,993-1,994 per ounce area, where the lower limit of triangle pattern as well as 50-hour moving average (green line) can be found.
Source: xStation5
