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Metal commodities weaken on rate hike worries

By Piero Cingari

12:17, 18 November 2021

Composite image of city, graph, stock and money
Prospect of higher interest rates also strengthened the dollar recently – Photo: Shutterstock

Precious metals are trading lower at midday UTC on Thursday on the prospects of higher interest rates, which also propelled the recent dollar’s strength and the rise in US Treasury yields.

Spot gold was last at $1,865/oz (-0.27% on the day) and spot silver traded at $25.07/oz (-0.4%).

Palladium lost 0.7% to $2,169/oz, while platinum fell 0.1% to $1,068. 

Copper was down 0.50% on the day, after recording three consecutive sessions of losses.

The US Dollar index (DXY) reached 95.61, close to its highest level since July 2020, while 10-year US Treasury yields hovered around 1.60%.

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Metal Commodities Performance Heatmap – 18 November 2021

A table showing the performance of gold, silver, palladium, platinum and copper Metals performance as of 18 November 2021 (12:30 UTC) – Credit: Capital.com

Gold

As of writing, spot gold was last at $1,865 per ounce, down 0.3% from a day before.

Growing market expectations on rising interest rates in the US are acting as a brake on the rally of the precious metal, which began last week after the release of the US inflation data.

The market now assigns a 64% probability that the Fed will start hiking interest rates as early as June next year.

In terms of performance, gold prices are up 0.6% from a week ago but still negative (-1.9%) year to date.

Spot gold is now trading 4.3% above the 50-day moving average and 11.2% above its 12-month low.

Gold technical levels:

  • 52-week high: $1,959
  • 52-week low: $1,678
  • 50-day moving average: $1,788
  • 200-day moving average: $1,792
  • 14-day Relative Strength Index (RSI): 65.64

Chart of the day: Gold rally paused for a breath

A chart showing gold prices over the last 3 monthXAU/USD Chart as of 18 November 2021 (12:30 UTC) – Credit: Koyfin

Silver

Spot silver was trading at $25.07 per troy ounce, down 0.4% from the previous day.

Silver prices have increased by 1.26% in the last week and by 7.11% compared to a month ago, but since the beginning of the year the performance is still negative (-5.6%).

Spot silver is now trading 6.6% above the 50-day moving average, but still 16% below its 52-week high ($29.89).

Natural Gas

2.79 Price
+0.140% 1D Chg, %
Long position overnight fee 0.0457%
Short position overnight fee -0.0677%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Silver

24.91 Price
-0.650% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.020

Oil - Crude

76.90 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0187%
Short position overnight fee -0.0032%
Overnight fee time 22:00 (UTC)
Spread 0.040

Oil - Brent

81.88 Price
+0.400% 1D Chg, %
Long position overnight fee -0.0067%
Short position overnight fee -0.0152%
Overnight fee time 22:00 (UTC)
Spread 0.032

Silver technical levels:

  • 52-week high: $29.89
  • 52-week low: $21.44
  • 50-day moving average: $23.51
  • 200-day moving average: $25.35
  • 14-day RSI: 61.46

Copper

Copper was last at $4.25 per pound, down 0.5% on the day.

Copper prices have recorded three consecutive sessions of losses, after rising worries on the demand outlook to the property sector crisis in China.

The industrial metal is now down 3% from a week ago, but remains one of best performers among metal commodities year to date (+21%).

Spot copper is now trading at 13.4% below its 52-week high ($4.90).

Copper technical levels:

  • 52-week high: $4.90
  • 52-week low: $3.19
  • 50-day moving average: $4.37
  • 200-day moving average: $4.32
  • 14-day RSI: 41.68

Platinum

Platinum was last at $1,068 an ounce, almost unchanged (-0.11%) from yesterday’s levels.

Platinum prices rose 6.4% from three months ago, posting the best performance among metals in the quarter.

Platinum technical levels:

  • 52-week high: $1,337
  • 52-week low: $901
  • 50-day moving average: $1,048
  • 200-day moving average: $1,025
  • 14-day RSI: 50.2

Palladium

Palladium was 0.7% lower at $2,169 an ounce in London midday trading.

The metal rebounded 6.28% from a week ago, but it’s still one of the worst performers over the past three months (-9.8%) among metal commodities.

Palladium prices are trading 28% below it 12-month high, and 12.7% below the 200-day moving average.

Palladium technical levels:

  • 52-week high: $3,017
  • 52-week low: $1,842
  • 50-day moving average: $2,022
  • 200-day moving average: $2,486
  • 14-day RSI: 63.54

Read more: Copper prices drop on stronger dollar, logjam eases

Markets in this article

Copper
Copper
3.84280 USD
-0.01009 -0.260%
Gold
Gold
2037.61 USD
-5.52 -0.270%
Palladium
Palladium
1048.80 USD
-6.9 -0.660%
Platinum
Platinum
941.95 USD
-4.8 -0.510%
Silver
Silver
24.909 USD
-0.162 -0.650%

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