Easing Omicron worries caps dollar as gold tops $1,800
11:14, 23 December 2021
Metal commodities continued to strengthen in European midday trading on Thursday, building on prior sessions of gains, as new research revealed a decreased chance of hospitalisation from Omicron, boosting risky assets and keeping the dollar’s strength contained.
Spot gold ticked 0.1% up to $1,808 per ounce (oz) by 11:30 GMT while spot silver rose by 0.2% to $22.24 per troy ounce (oz t).
US Treasury yields recovered, with the yield on the 10-year benchmark up by 2 basis points to 1.47%. The dollar index (DXY) remained flat at 96.05.
Platinum edged 0.5% higher to $970/oz and Palladium extended its rally by 0.8% to $1,881/oz.
Copper weakened by 0.4% to $4.36 per pound as China announced new lockdowns in provinces hit by a surge in Covid-19 infections.
What is your sentiment on Silver?
Metal commodities performance heatmap – 23 December 2021
Metal commodities performance heatmap as of 23 December 2021, 11:30 GMT – Credit: Capital.comGold
At time of writing, spot gold was last trading at $1,808/oz, on course to record its second consecutive week of gains.
Despite rising pressure from market forecasts on faster rate rises by the US Federal Reserve in 2022, gold prices have remained solid in recent weeks, backed by a recovery in investors’ inflation expectations.
Gold prices are 1.5% higher from a week ago, but still 5% lower year-to-date.
Technically, last week the 50-day simple moving average (SMA) crossed the 200-day SMA in the daily chart, forming the so-called “golden cross” – a technical pattern indicative of the start of a potential bullish trend.
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving average (one-day chart): $1,800
- 200-day moving average (one-day chart): $1,796
- 14-day relative strength index (RSI) (one-day chart): 55
Chart of the day: Gold traded hand-in-hand with long-term investors’ inflation expectations
Gold (XAU/USD) vs 10-year US inflation breakeven rate – Credit: KoyfinSilver
Spot silver traded at $23.82/oz t, up by 0.2% in midday trading in Europe.
Silver prices have weakened by about 5% over the past month, and by 14% year-to-date.
Current prices are now trading 3% below the 50-day SMA and 24% below its 52-week highs ($29.89).
Silver technical levels:
- 52-week high: $29.89
- 52-week low: $21.44
- 50-day moving average (one-day chart): $23.50
- 200-day moving average (one-day chart): $24.85
- 14-day relative strength index (RSI) (one-day chart): 50
Copper
Copper was last trading at $4.37 per pound at time of writing, down 0.4% on the day, as renewed worries of a widespread restrictions in China weighed on the metal.
Copper prices are 1.7% higher on the week, and still 25% up on the year-to-date.
Copper technical levels:
- 52-week high: $4.90
- 52-week low: $3.48
- 50-day moving average (one-day chart): $4.39
- 200-day moving average (one-day chart): $4.35
- 14-day relative strength index (RSI) (one-day chart): 53
Chart of the week: Palladium rallied among metals in December
Metal commodities MTD performance as of 23 December 2021 – Credit: KoyfinPlatinum
Platinum was trading at $970/oz, up 0.5% today.
The precious metal has gained nearly 4% from a week ago, but is still 8% lower compared to the start of the year.
Platinum is currently trading at 2% above its 50-day SMA and 27% below its 12-month high ($1,337).
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $893
- 50-day moving average (one-day chart): $950
- 200-day moving average (one-day chart): $994
- 14-day relative strength index (RSI) (one-day chart): 53
Palladium
Palladium gained 0.8% to $1,881/oz by 11:30 GMT in London, after posting two consecutive sessions of gains.
Palladium prices have rallied by 8% month-to-date and by 10% in the past week alone, owing to easing supply-chain concerns that contributed to the metal's year-to-date underperformance (-22%).
Palladium is now trading 2% below its 50-day SMA and 22% below the 200-day SMA.
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,537
- 50-day moving average (one-day chart): $1,924
- 200-day moving average (one-day chart): $2,410
- 14-day relative strength index (RSI) (one-day chart): 55
Markets in this article
Related topics