Precious metals softer ahead of key US economic data
11:31, 24 November 2021
Precious metals were softer in London midday trading, after four straight sessions of losses, as investors await today’s key releases from the Fed minutes and core Personal Consumption Expenditure (PCE).
Gold traded at $1,787 per ounce (oz) by 12:30 GMT, down 0.1% on the day, and below the psychological level of $1,800/oz. Silver was also down 0.7% on the day to $23.46 per troy ounce (ozt).
Platinum recovered to $980/oz (+1.2%) and palladium was unchanged at $1,859/oz, after yesterday experiencing one of its worst sessions since June.
Most industrial metals gained on tightening market conditions, with copper jumping 0.8% amid worries over supply disruptions in mining output in Peru.
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Metal Commodities Performance Heatmap – 24 November 2021
Metal Commodities Performance Heatmap as of 24 November 2021, 12:30 GMT – Credit: Capital.com Gold
As of writing, spot gold was last at $1,787/oz, slightly down 0.1% on the day.
Gold recorded four straight sessions of losses amid rising market expectations that Powell’s reappointment as head of the US Fed could lead to rate hikes next year.
Meanwhile, the US dollar (DXY) reached a new year-to-date high (96.66) while the yield on the US 10-year Treasury rose to 1.64%.
Today is a busy economic calendar in the US ahead of the Thanksgiving holiday. Gold traders will await in particular the October's print of the core Personal Consumption Expenditure (PCE) – the Fed's favourite gauge of inflation – as well as minutes from the latest Fed meeting, which will add further to tapering's discussions.
In terms of performance, gold prices are 3.3% lower since last week and almost 6% down year-to-date.
Spot gold is now trading around its 50-day simple moving average (SMA) and 8.7% below its 12-month highs.
Gold technical levels:
- 52-week high: $1,959
- 52-week low: $1,678
- 50-day moving average (1-day chart): $1,789
- 200-day moving average (1-day chart): $1,791
- 14-day relative strength index (RSI) (1-day chart): 41.9
Silver
Spot silver traded at $23.46/ozt by 12:30 GMT, down 0.75% on the day.
Silver's value decreased more 10% lower year-to-date, and was down 5.1% from a week ago.
Spot silver is now trading around its 50-day SMA and 21% below its 52-week highs ($29.89)
Silver technical levels:
- 52-week high: $29.89
- 52-week low: $21.44
- 50-day moving average (1-day chart): $23.53
- 200-day moving average (1-day chart): $25.28
- 14-day relative strength index (RSI) (1-day chart): 41.08
Chart of the day: 10-year US real yields set the tone for Gold
US 10-year real yields vs Gold (inverted) – Credit: TradingviewCopper
Copper was trading at $4.46 per pound (lb) by 12:30 GMT, up 0.6% on the day.
Yesterday, demonstrations erupted in the southern Peruvian province of Chumbivilcas, with villagers blocking a critical route utilised by Las Bambas, one of the country’s major copper mines, escalating concerns about supply shortages. Copper prices also benefitted earlier this week when Chinese authorities sent out signals suggesting a relaxation of monetary policy, which might enhance the metal's demand outlook.
Copper is 3.5% higher from the previous week and it has appreciated 25% year-to-date.
Spot copper is now trading 1.9% above its 50-day SMA and 9% below its 12-month high ($4.90)
Copper technical levels:
- 52-week high: $4.90
- 52-week low: $3.28
- 50-day moving average (1-day chart): $4.37
- 200-day moving average (1-day chart): $4.33
- 14-day relative strength index (RSI) (1-day chart): 52.51
Platinum
Platinum was trading at $980/oz at 12:30 GMT, up 1.24% on the day.
Platinum’s value decreased 6.8% from a month ago and has dropped 9% since the beginning of the year.
Platinum is trading 5.8% below its 50-day SMA and 27% below its 12-month high ($1,337).
Platinum technical levels:
- 52-week high: $1,337
- 52-week low: $901
- 50-day moving average (1-day chart): $1,040
- 200-day moving average (1-day chart): $1,021
- 14-day relative strength index (RSI) (1-day chart): 21.43
Palladium
Palladium was 0.1% down to $1,859/oz by 12:30 GMT.
Palladium recorded the worst weekly performance among metals (-14.6%) and its value is almost 24% lower for the year-to-date.
Palladium is now trading 7.6% below its 50-day SMA and 38.4% below its 12-month high ($3,017).
Palladium technical levels:
- 52-week high: $3,017
- 52-week low: $1,837
- 50-day moving average (1-day chart): $2,011
- 200-day moving average (1-day chart): $2,478
- 14-day relative strength index (RSI) (1-day chart): 34.9