May 13, 2022 13:54 GMT
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- Spot gold extends the recent decline, touching the lowest levels since early February and showing (albeit briefly) below $1800/oz. The move puts gold lower for four of the past five sessions, and notably gold trades softer Friday despite the bounce in US equities off the week's lows (gold and stocks were well correlated intraday Thursday).
- The greenback is mildly firmer, which will be adding some pressure as well as slightly higher US yields.
- On a technical basis, gold remains vulnerable - Wednesday's move lower confirmed a resumption of the current downtrend. The sell-off resulted in a break of $1848.8, 76.4% of the Jan 28 - Mar 8 rally. This paves the way for a move toward $1780.4, the Jan 28 low.
- The move in gold is not contained, however, with silver being the more notable underperformer in recent sessions. The move has prompted the gold/silver ratio to rally to multi-year highs this week, touching 88.5 - the highest level since mid-2020 on Thursday.