By NewsBlogger Gold and silver prices have seen significant movements in recent months, with gold experiencing a 19% increase and silver climbing 0.60% after a recent dip, driven by factors such as risk-off impulses, high US Treasury bond yields, geopolitical tensions, and concerns about a global economic downturn.
At a glance
- Gold has experienced a 19% increase since hitting a low in October.
- Silver has climbed 0.60% to trade at $24.46 after a recent dip.
- The rise in silver prices can be attributed to a risk-off impulse and high US Treasury bond yields.
- The gold price is currently in a bullish consolidation phase below $2,200, nearing its record peak.
- Both gold and silver show potential for further price movements based on economic indicators, technical analysis, and market sentiment.
The details
Gold (XAU/USD) and silver (XAG/USD) prices have moved significantly in recent months.
Gold has experienced a 19% increase since hitting a low in October, while silver has climbed 0.60% to trade at $24.46 after a recent dip.
Gold has also gained almost 7% over the past month, prompting UBS strategists to analyze the yellow metal’s outlook.
Rise in Silver Prices
The rise in silver prices can be attributed to a risk-off impulse and high US Treasury bond yields.
However, silver remains below last week’s high of $24.50. The Relative Strength Index (RSI) studies suggest further upside potential for silver, with buyers needing to break the $24.50 area for additional gains.
The year-to-date (YTD) high for silver is $24.63, followed by the August 30 peak at $25.00. A decisive break above these levels could expose the December 4 high at $25.91, while a drop below $24.18 may bring downside risks, with support levels at $24.00 and $23.57.
Rise in Gold Prices
On the other hand, the gold price (XAU/USD) is currently in a bullish consolidation phase below $2,200, nearing its record peak.
The rise in bets on the Federal Reserve cutting interest rates at its June policy meeting, along with a spike in the US unemployment rate leading to a decline in US Treasury bond yields, has supported the price of gold.
Geopolitical tensions and concerns about a global economic downturn have also contributed to the positive outlook for gold.
Bulls in the market are hesitant to place fresh bets due to overbought conditions on the daily chart and the fact that they are ahead of the release of US consumer inflation figures.
Despite a technical breakout last week that favors bullish traders, the RSI is showing overbought conditions.
Support is expected near the $2,154 region, with the potential for a corrective slide toward the $2,125 support level.
A break above the $2,200 mark could lead to uncharted territory and further gains for XAU/USD.
Overall, the analysis indicates a complex interplay of factors influencing the gold and silver markets.
Both metals show potential for further price movements based on economic indicators, technical analysis, and market sentiment.
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| fxstreet.com |
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| – Gold (XAU/USD) has increased by close to 19% since a low in October – Gold has gained almost 7% over the past month – Strategists at UBS are analyzing the outlook for gold – The analysis is focused on the yellow metal |
| fxstreet.com |
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| – Silver climbed 0.60% as the New York session ended, trading at $24.46 after bottoming at $24.24 – The increase in silver’s price was due to a risk-off impulse and high US Treasury bond yields – Silver remains below last week’s high of $24.50 – Relative Strength Index (RSI) studies suggest further upside for silver – Buyers must break the $24.50 area for further gains – The current year-to-date (YTD) high for silver is $24.63, followed by the August 30 peak at $25.00 – A decisive break could expose the December 4 high at $25.91 – If sellers push XAG/USD prices below $24.18, downside risks emerge at $24.00 – The next support level would be at $23.57, the March 6 low |
| fxstreet.com |
|---|
| – Gold price (XAU/USD) is in a bullish consolidation phase below $2,200, close to record peak – Rising bets on Federal Reserve cutting interest rates at June policy meeting – US unemployment rate spike leads to decline in US Treasury bond yields, supporting gold – Geopolitical tensions and concerns about global economic downturn also support gold price – Bulls hesitant to place fresh bets due to overbought conditions on daily chart and ahead of US consumer inflation figures release – Technical breakout last week favours bullish traders, but RSI showing overbought conditions – Support likely near $2,154 region, with potential for corrective slide towards $2,125 support – Break above $2,200 mark could lead to uncharted territory and further gains for XAU/USD |
