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GOLD: Drops To Lowest Level Since October 10

GOLD
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Gold is steady in today’s Asia-Pacific session, following a 2.4% decline yesterday to $2,619/oz, its lowest level since October 10.

  • The cash US treasury market was closed on Monday in observance of the Veterans Day holiday, but Treasury futures (TYZ4) were weaker. US treasury yields are 1-3bps higher in today’s Asia-Pac session. Higher rates are typically negative for gold, which doesn’t pay interest.
  • The S&P 500 reset its record high (6017.31) yesterday, though it failed to hold its early advance. The Russell 2000 Index was up ~1.5%, reaching its highest level since 2021. European equities made solid gains with the Euro Stoxx closing 1.2% higher.
  • Despite the move on the back of the strong US dollar, Deutsche Bank remains bullish on gold long-term, supported by a higher rate of central bank accumulation.
  • According to MNI’s technicals team, the trend condition in gold remains bullish and the latest pullback appears corrective. However, yesterday’s sell-off delivered a print below the 50-day EMA, at $2,646.2, turning attention to $2,604.9, the Oct 8 low.
  • Silver also fell by a further 2.2% on Monday, narrowing the gap towards $30.269, a trendline support.
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Gold is steady in today’s Asia-Pacific session, following a 2.4% decline yesterday to $2,619/oz, its lowest level since October 10.

  • The cash US treasury market was closed on Monday in observance of the Veterans Day holiday, but Treasury futures (TYZ4) were weaker. US treasury yields are 1-3bps higher in today’s Asia-Pac session. Higher rates are typically negative for gold, which doesn’t pay interest.
  • The S&P 500 reset its record high (6017.31) yesterday, though it failed to hold its early advance. The Russell 2000 Index was up ~1.5%, reaching its highest level since 2021. European equities made solid gains with the Euro Stoxx closing 1.2% higher.
  • Despite the move on the back of the strong US dollar, Deutsche Bank remains bullish on gold long-term, supported by a higher rate of central bank accumulation.
  • According to MNI’s technicals team, the trend condition in gold remains bullish and the latest pullback appears corrective. However, yesterday’s sell-off delivered a print below the 50-day EMA, at $2,646.2, turning attention to $2,604.9, the Oct 8 low.
  • Silver also fell by a further 2.2% on Monday, narrowing the gap towards $30.269, a trendline support.