Metal commodities weaken on rate hike worries
12:17, 18 November 2021
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
Metals performance as of 18 November 2021 (12:30 UTC) – Credit: Capital.comGold
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
XAU/USD Chart as of 18 November 2021 (12:30 UTC) – Credit: KoyfinSilver
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).
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