Precious metals rebound after fall triggered by stronger dollar
12:20, 17 November 2021
Precious metals rebounded in Wednesday’s European session, with spot gold at $1,862 per ounce (+0.5% on the day) after falling as much as 0.7% yesterday due to a stronger US dollar and higher Treasury yields.
The US Dollar index (DXY) reached 95.91, the highest level since July 2020, while the 10-year US Treasury jumped to 1.64% and is trading into a high 12-month range.
Spot silver traded at $25.13 per ounce, up 0.2% from the previous close.
Copper extended its losses to $4.30 per pound (-1.15%) as worries on China’s real-estate sector continue to drive industrial metals lower.
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Metal commodities performance heat-map – 16 November 2021
As of writing, spot gold was last at $1,862 per troy ounce, up 0.6% from previous close.
Yesterday, gold recorded the second-worst performance since the beginning of the month, losing 0.6%, on a session marked by a broad strengthening of the dollar on the forex market and the rise in US Treasury yields.
Gold prices rose 1.6% over the past week and 5.3% from a month ago, after US Consumer Prices Index (CPI) data surprised market expectations to the upside in October.
Spot gold is now trading 4.3% above the 50-day moving average and 11% above its 12-months lows.
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving average: $1,787
- 200-day moving average: $1,792
- 14-day Relative Strength Index (RSI): 66.38
Spot silver was last at $25.13 per troy ounce, up 0.23% on the day.
Silver prices increased 7.6% from a month ago, posting the highest monthly performance among metals.
Spot silver is trading 7% 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: $23.36
- 200-day moving average: $25.50
- 14-day RSI: 63.32
Copper slipped to $4.30 per pound, losing 1.15% from the previous close and almost erasing its weekly gains.
According to a news report in Mining Journal, the deputy general manager of state-owned China Copper International Trading Group said there were growing fears that Chinese property developers’ debt crisis is weighing on industrial metals.
In 2021, copper has been the best performer among metal commodities, up about 23% year-to-date, but its price has fallen by nearly 8% from a month ago.
Spot copper currently trades at 12.2% 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: 46.49
Chart of the day: Copper didn’t join the metals rally this month
Platinum was last at $1,071 an ounce, almost unchanged (-0.1%) from the previous close.
Platinum prices have risen 6.4% from three months ago, posting the highest performance among metals over the same horizon.
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $901
- 50-day moving average: $1,049
- 200-day moving average: $1,007
- 14-day RSI: 46.68
Palladium was 0.34% lower at $2,160 an ounce in London midday trading.
Palladium has been the best performer among metals over the past week (+6.7%), but it’s still 11.9% lower year-to-date.
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,842
- 50-day moving average: $2,020
- 200-day moving average: $2,487
- 14-day RSI: 60.83