Precious metals

Gold investors face key dilemma as rising geopolitical risks could keep gold supported on dips, but even higher yields continue to increase the opportunity cost of holding gold. Gold technical analysis point to overbought conditions, so a bit of short-term weakness should not come as surprise.

DJIA analysis: Stocks tumble on Middle East jitters, as VIX spikes. US dollar has also extended its rally on reduced rate cut expectations and risk off sentiment. Meanwhile, gold looks like it may have topped out.

Gold analysis: Technical levels and factors to watch on gold as the metal hits a fresh record high. But at these extremely overbought levels, do watch out for a possible correction. Gold's resistance against rising yields may be short-lived.

Gold's weekly RSI above 75 is too high for bulls to be comfortable with following its big rally. Additionally, gold may be unable to defy rising yields for too long, as it increases the opportunity cost of holding gold. US CPI coming up later in the week could trigger the next big move in gold.

Precious metals again disregard rising yields, as silver stages big breakout and gold rallies to a new record high. Gold technical analysis suggests yellow metal is at extreme overbought levels.

Gold within $5 shy of $2300 in another record hitting session after the ISM PMI missed expectations. Gold technical analysis suggests metal is looking overbought and that a pullback could be on the way soon.

Looking at an equal-weighted gold basket against FX majors, its bullish character has certainly changed since breaking above its previous ATH.

Welcome to another edition of Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this week’s report, we will get technical on precious metals.

Silver may be about to play catch up with yellow metal, after a multi-year consolidation. For this week, all eyes are on US CPI which could impact the direction of dollar and therefore gold and silver. Silver technical analysis point to a potential breakout towards $30.

Dollar weakens as focus turns to Powell testimony and key employment data. Gold technical analysis suggests metal is about to hit a new record high.

What factors have contributed to the metal’s ascend? Coming up later in the week, we have Powell's testimony and February jobs report to look forward to. For now, gold technical analysis point higher and suggest we could see a new record high soon.

Silver has recorded its largest gain in months, sparking plenty of excitement on social media and other investment platforms that the move may be the start of a prolonged price rally.

The opportunity cost of holding gold rises with bond yields on the rise on stronger and amid a racier US equity market. Gold technical analysis suggests a potential break below $2015 could initiate renewed selling pressure

Given that the odds of rate cuts have been trimmed by hotter inflation data last week, this is increasing the opportunity cost of holding gold over bonds. Therefore, the short-term gains could evaporate soon. Gold is more likely to hit new records closer to time of rate cuts, though.

Higher bond yields, stronger US dollar, no major escalation in geopolitical tensions in the Middle East. It’s the kind of backdrop you wouldn’t expect gold to thrive in. But its first probe below $2000 per ounce in 2024 didn’t last long, rebounding strongly to push back into the range it’s been operating in since mid-December.

Bears in charge of metal amid hot CPI and hawkish Fed. Today saw US CPI print 3.1% with core CPI remaining unchanged at 3.9%, both hotter than expected, Consequently, gold sold off along with bonds and equities.

Attention will turn to the BoE rate decision and US jobs data next. Today we will have the challenger job cuts and jobless claims figures to look forward to, ahead of the official non-farm payrolls report on Friday.