Gold and silver prices took a hit in the market as U.S. inflation reports triggered expectations of a more hawkish Federal Reserve. The drop in prices was driven by rising Treasury yields, which reached new highs as bond traders anticipated a more aggressive stance from the Fed. This development is bearish for gold and other precious metals, as they do not offer any interest payments.
Gold, in particular, is facing strong pressure as traders react to the U.S. inflation reports. If it remains below the $2000 level, it is likely to head towards the next support at $1965 – $1975. The decline in gold prices can be attributed to the rising Treasury yields, which make alternative investments more attractive.
Silver, too, is losing ground in the market as the gold/silver ratio climbed back above the 90 level. The U.S. dollar also tested new highs after the release of the Consumer Price Index (CPI) data, adding further pressure on silver markets. If silver falls below the $22.25 level, it will open the way for a test of the support at $21.50 – $21.65.
Platinum, another precious metal, experienced a pullback amid a broad sell-off in the precious metals markets. If platinum declines below the $870 level, it is expected to head towards the support at $840 – $850.
It is important for investors and traders to stay updated on economic events that can impact the markets. Checking out an economic calendar can provide valuable insights into upcoming events and their potential impact on various assets.
In conclusion, the drop in gold and silver prices can be attributed to the U.S. inflation reports triggering expectations of a more hawkish Federal Reserve. Rising Treasury yields and a stronger U.S. dollar have put additional pressure on these precious metals. Investors should closely monitor market developments and economic events to make informed decisions about their investments in these assets.
