Gold shines amid growth worries caused by new variant
11:18, 26 November 2021
Gold strengthened among metal commodities on Friday as the discovery of a new Covid-19 variant boosted investor demand for safe-haven assets and sparked a risk-off mood in the market.
Spot gold rose 1.3% to $1,813 an ounce (oz) at 11:30 UTC, buoyed by a decline in Treasury yields and a pause in the dollar rally.
Yields on the 10-year US Treasury dropped 12 basis points to 1.51% and the US dollar index (DXY) retraced to 96.19, down 0.5% on the day.
Silver traded at $23.63 per troy ounce (ozt), up 0.2% on the day, while platinum lost 0.5% to $990/oz.
Industrial metals suffered heavy losses, with copper down 3% to $4.31 per pound amid fears that the new variant could slow the ongoing economic recovery.
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Metal commodities performance heatmap – 26 November 2021
Metal commodities performance heatmap as of 26 November 2021 11:30 UTC – Credit: Capital.comGold
As of writing, spot gold was last at $1,814/oz, up 1.3% on the day.
Gold prices closed the day marginally higher yesterday, snapping a five-session losing streak, aided by growing market forecasts for a stronger pace of monetary tightening next year.
Today, the precious metal benefitted from the flight to safe-haven assets triggered by the new variant of Covid-19 (B.1.1.529) found in South Africa. Confirmation of higher transmission risks and vaccine resistance might dampen investors’ expectations for 2022 interest rate rises, which had been one of the primary factors pushing gold down recently.
In terms of performance, gold prices are still 2.7% down from a week ago and 4.7% lower year-to-date.
Spot gold is now trading at 1% in line above its 50-day simple moving average (SMA), which in turn is approaching the 200-day SMA.
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving average (one-day chart): $1,791
- 200-day moving average (one-day chart): $1,792
- 14-day relative strength index (RSI) (1-day chart): 42.8
Chart of the day: Gold prices at a crucial technical juncture as 50-day SMA approaches 200-day SMA
XAU/USD, 50-day SMA and 200-day SMA – Credit: Capital.comSilver
Spot silver traded at $23.64/ozt by 11:30 UTC, up 0.2% on the day.
Silver lost almost 11% of its value year-to-date, and 5% over just the past week.
Spot silver is now trading around its 50-day SMA but still 21.2% below its 52-week high ($29.89).
Silver technical levels:
- 52-week high: $29.89
- 52-week low: $21.44
- 50-day moving average (one-day chart): $23.56
- 200-day moving average (one-day chart): $25.23
- 14-day relative strength index (RSI) (one-day chart): 42.02
Copper
Copper was at $4.31 per pound by 11:30 UTC, down nearly 3% on the day.
The discovery of the new variant of Covid weighs on industrial metals, as concerns about a new economic slowdown dampen the outlook for copper demand.
In terms of performance, copper is now 1.6% up from the previous week, but still 2.3% lower than a month ago.
Spot copper is now trading 1.4% below its 50-day SMA and 11.8% below its 12-month high ($4.90).
Copper technical levels:
- 52-week high: $4.90
- 52-week low: $3.32
- 50-day moving average (one-day chart): $4.37
- 200-day moving average (one-day chart): $4.33
- 14-day relative strength index (RSI) (one-day chart): 45.64
Platinum
Platinum was trading at $990/oz by 11:30 UTC, down 0.54% on the day.
Platinum’s value decreased 4.8% from a month ago and has dropped nearly 9% year-to-date.
Platinum is trading 4.7% below its 50-day SMA and 26% below its 12-month high ($1,337).
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $901
- 50-day moving average (one-day chart): $1,037
- 200-day moving average (one-day chart): $1,020
- 14-day relative strength index (RSI) (one-day chart): 41.27
Palladium
Palladium was 0.5% down to $1,841/oz by 11:30 UTC.
Palladium posted the worst weekly performance among metals (-12%) and its value lost 26% year-to-date.
Palladium is now trading 4.7% below its 50-day SMA and 26.1% below its 12-month high ($3,017).
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,837
- 50-day moving average (one-day chart): $2,004
- 200-day moving average (one-day chart): $2,473
- 14-day relative strength index (RSI) (one-day chart): 35.34
Read more: Steel prices to ease in 2022 as rally is over
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