Metals weaken amid speculation over higher US interest rates
11:10, 12 November 2021
Metal commodities weakened amid growing market speculation over a faster pace of interest rate normalisation next year, which could undermine investor sentiment towards non-yielding assets.
The 2-year US Treasury yield soared to 0.54%, its highest level since March 2020, while US 10-year real yields rose from record low levels to hover around -1%.
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Metal Commodities Performance Heatmap – 12 November 2021
At time of publication, gold spot was at $1,846 an ounce, down 0.8% on the day.
Gold had jumped around 2% after the release of the US CPI, but rising expectations about a faster-than-expected series of interest rate hikes in the US is now weighing on the precious metal.
10-year US Treasury yields rose by 15 basis points over the past two days to 1.58%, which also led to real rates rising from their historical lows.
As a result, Gold’s 14-day Relative Strength Index (RSI) indicator retreated from its closing position yesterday of 70, where it had touched overbought territory, to stand at just under 65.
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving aerage: $1,784
- 200-day moving average: $1,791
- 14-day Relative Strength Index (RSI): 64.82
Chart of the day: US 2-year bond yields rose to March 2020 highs
Silver’s spot price is trading at $24.98 per troy ounce at time of publication, down 1.26% on the day.
The value of silver has increased 10.3% over the past month, making it the best-peforming metal during that period.
Its 52-week high stands at $29.89, or 16.5% above current spot prices, while the 200-day moving average sits 1.6% below.
Silver technical levels:
- 52-week high: $29.89
- 52-week low: $21.44
- 50-day moving average: $23.45
- 200-day moving average: $25.49
- 14-day RSI: 62.8
At time of publication, Copper spot prices were trading at $4.386 per pound, down 0.32% from its previous close.
Copper remains the year’s best performer among metal commodities to date, having increased in value around 25% over the past year.
Its 52-week high stands at $4.90, or 10.5% above current spot prices, while the 50-day moving average sits 0.6% below.
Copper technical levels:
- 52-week high: $4.90
- 52-week low: $3.13
- 50-day moving average: $4.36
- 200-day moving average: $4.30
- 14-day RSI: 50.11
Platinum was at $1,076 an ounce at time of publication, down 1.74% for the day.
Platinum prices have risen 4.88% on the week and 6.5% over the past three months.
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $862
- 50-day moving average: $1,040
- 200-day moving average: $1,026
- 14-day RSI: 72
Palladium dropped 1.4% lower to $2,033 an ounce, as of publication time.
Over the past week, prices have risen by 1.4%, but the metal is still 15% down over the course of the past year.
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,842
- 50-day moving average: $2,031
- 200-day moving average: $2,490
- 14-day RSI: 52.76