PRECIOUS METALS: Gold Feels Weight of Firming USD, But Silver Suffers Further Still
Jul-27 13:50By: Edward Hardy
- Gold feeling the pressure of the rallying greenback, with a sizeable uptick in futures volumes pushing daily activity well above the cumulative average. The combination of firmer than expected US data and related yield spread widening in the USD’s favour has weighed on precious metals, with spot now over ~$35/oz shy of session highs. Technically, the 50-day EMA has just been breached, with any meaningful extension below $1,950/oz opening the way to the July 11 low (1,924.5/oz).
- Despite the notable pull lower in gold, silver is underperforming further still, prompting the gold/silver ratio to reverse two days of losses and near the best levels since Jul13 and the lower than expected US CPI print. Silver first sees support at $23.928, the 100-dma.
