Sellers are in control of the rally in US bond yields

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Gold (XAU / USD) and Silver (XAG / USD) price, chart and analysis

  • Gold will find resistance that is difficult to break.
  • Silver sits just above an important support area.

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the The ongoing rally in US bond yields continues to weigh on both gold and silver, putting both at risk of further losses. The Fed’s restrictive turn last week has pushed UST yields up across the board, with the 10-year benchmark currently at 1.54%, its highest level since mid-June, while the rate-sensitive 2-year UST is offered at 0.315%. the highest level in 18 months. Monday’s $ 60 billion 2-year and $ 61 billion 5-year bond sales met sluggish demand, and all eyes are now on today’s $ 62 billion 7-year bond sale . In February of this year, the 7-year auction delivered very poor results, which made bond yields significantly higher as traders held much more than the usual amount of bonds. Another weak auction today could result in yields rising even higher along the curve.

US Treasury Bond Yields September 28, 2021

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Gold remains under pressure from both higher yields and a stronger US dollar, and any pullback will be volatile as the precious metal seeks the next level of support. The 50% Fibonacci retracement level at $ 1,763 / ounce. should limit any upward movement as the next level of technical support is seen from the 61.8% fib retracement level at $ 1,689.5 / ounce. All three simple moving averages remain negative.

Gold (XAU / USD) Daily Price Chart September 28, 2021

Gold and silver price outlook grim: Sellers have control of the rally in US bond yields

Retailer data demonstrate 74.52% of traders are net long with a long to short trader ratio of 2.92 to 1.The number of net long traders is 2.64% higher than yesterday and 2.29% lower than the previous week, while the number of net short traders is 9.48% higher than yesterday and 37, 37% higher than last week.

We typically take the opposite view of sentiment, and the fact that traders are net long suggests gold prices may continue to fall.Nevertheless, traders are less net long than yesterday and compared to the previous week. Recent changes in sentiment warn that the current The gold price trend could soon be reversed on the upside, although traders remain net long.

Silver has been selling off for several months, with the semi-precious metal now attempting to retest a zone of previous support created by three old swing lows between $ 21.65 and $ 22.12. If silver breaks this support zone, it will be back at levels last seen in June 2020. As with gold, the formation of all three simple moving averages is bearish.

Silver daily price chart September 28, 2021

Gold and silver price outlook grim: Sellers have control of the rally in US bond yields

What do you think about this gold and silver – bullish or bearish ?? You can let us know using the form at the end of this piece or contact the author on Twitter @ nickcawley1.

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