Precious Metals sees panic selling on rising Dollar and Bond Yields

Fundamental Q News and Triggers

Gold and Silver prices see a parabolic fall as the Dollar Index has surged to an 11-month high trading above 107, propelled by robust US employment data and higher US Treasury yields.

The dollar is strengthening as several Federal Reserve policymakers have hinted at another rate hike in November or December to keep headline inflation under control and closer to the central bank’s 2% annual objective, which is now 3.7%.

The US economy’s strength as a result of a tight labour market and strong consumer spending has bolstered the Fed’s hawkish approach. Moreover, the US 2-year bond yield has crossed the 5% level, 10-year treasury bond yield has crossed the 4.8% level and is trading at a 16-year high.


Technical Triggers

Gold continues to break all support levels on panic selling. Prices are waiting for a trigger for prices to get supported. Next support is $1830 (Rs 56000)

Silver has broken uptrend line support at Rs 70000, prices could get next support at Rs 66000

Support and Resistance



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