- Gold prices trim daily losses as dollar soars on risk aversion.
- US yields slump amid recession fears.
- Silver also rebounded, down “only” 2.60%.
Metals rallied during the American session, amid a plunge in US yields. The rally in Treasuries boosted gold, which dragged silver higher. The XAU/USD around $1,800/oz, far from the daily low.
Falling Yields Help Gold, Silver
Yields in the US soared lower. The US 10-year Treasury bond yield fell to 2.79%, the lowest level since late May (it traded above 3.00% as of early Friday), while the US Treasury bond yield at 30 years it fell to 3.02%.
The fear of recession is softening the expectations of the Fed’s adjustment. The bond market shows more concerns on Friday than the stock market. On Wall Street, the Dow Jones falls 0.56% and the Nasdaq 0.49%.
The sharp drop in yields pushed gold back above $1,800, easing bearish pressure. XAU/USD bottomed at $1,784, the lowest since late January. It continues to drop on the day and is about to post the lowest weekly close in months. The zone around the 2022 low at $1,780 is critical support.
Silver also trimmed losses, dragged higher by gold. XAG/USD bottomed at $19.38, a level not seen since July 2020, and is trading at $19.75, down 2.60%. The price is below the 200-week simple moving average for the first time since May 2020.
|Last Price Today||1807.84|
|Today’s Daily Change||0.54|
|Today’s Daily Change %||0.03|
|Today’s Daily Opening||1807.3|
|20 Daily SMA||1834.99|
|50 Daily SMA||1849.89|
|100 Daily SMA||1891.72|
|200 Daily SMA||1845.12|
|Previous Daily High||1825.19|
|Previous Daily Minimum||1802.79|
|Previous Maximum Weekly||1847.95|
|Previous Weekly Minimum||1816.99|
|Monthly Prior Maximum||1879.26|
|Previous Monthly Minimum||1802.79|
|Daily Fibonacci 38.2%||1811.35|
|Daily Fibonacci 61.8%||1816.63|
|Daily Pivot Point S1||1798.33|
|Daily Pivot Point S2||1789.36|
|Daily Pivot Point S3||1775.93|
|Daily Pivot Point R1||1820.73|
|Daily Pivot Point R2||1834.16|
|Daily Pivot Point R3||1843.13|
Source: Fx Street