Tue. Oct 26th, 2021

Wednesday’s gold futures fell, toward the strongest daily fall in more than two weeks as investors drove equity stocks to record highs and the U.S. dollar strengthened, weighing on precious metals. at the price of the dollar.

December Gold GCZ21,
-0.75%
it was trading at $ 13.80, or 0.8%, below $ 1,794.70 an ounce, losing control over the $ 1,800 level, after rising 0.1% on Tuesday.

Commodity experts said gold could range between a short-term moving average of $ 1,793.33 an ounce and its 200-day AM to $ 1,812.59, with the latter as resistance as investors see more opportunities in stocks rather than safe haven assets like gold and bonds.

FactSet

In fact, the Nasdaq Composite COMP,
+ 0.52%
and the S&P 500 SPX index,
+ 0.15%
it ended the record-high close on Tuesday, though it looked like it would be under some pressure in early Wednesday.

“And that’s exactly what keeps gold from earning above $ 1,800 an ounce. The shares are too appetizing, too prosperous for investors to put in gold, ”Ipek Ozkardeskaya, a senior Swissquote analyst, wrote in a daily note.

“Gold’s advantage should remain limited as long as we see US stocks claim new records,” the analyst wrote.

The fall in bullion is also occurring as the dollar, as calculated by the US Dollar ICE Index, rose 0.2%, although it is well on its way to a weekly pullback of 0, 5%. In addition, the ten-year Treasury BX rating: TMUBMUSD10Y stood at around 1.30%, representing a maximum of approximately two weeks.

A stronger dollar may make dollar-linked bullion relatively expensive for foreign buyers, while rising yields may make public debt more attractive to those seeking assets perceived as paradises.

Meanwhile, silver for September delivery SIU21,
-0.44%
it was trading at 15 cents, or 0.6%, below $ 23.75 an ounce, after a 1% rise on Tuesday.

Metal traders are awaiting the annual monetary policy symposium of Jackson Hole central bankers, where Federal Reserve Chairman Jerome Powell on Friday may indicate that the central bank will delay monthly purchases of treasuries and mortgages, which could influence the purchase of gold.

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