Precious metals and most commodities continue to be under pressure this morning as trading heads for the finish line in a week that has seen sharp losses in the precious metals complex on the back of USD strength and rising interest rates.
Precious metals and most commodities continue to be under pressure this morning as trading heads for the finish line in a week that has seen sharp losses in the precious metals complex on the back of USD strength and rising interest rates. I often write about the yield of the 10-year bond and its impact on price direction. Over the course of the last month or so, the yield has moved up from the low 2.30s to another sell off in bonds this morning which has the yield at 2.60 percent. While the yield is historically very low, the rising rate weighs heavily on our market as it supports the USD.
Next week brings us an FOMC meeting which should conclude with a statement on the committee’s view of the economy and thus a clearer picture on their course for interest rate hikes in 2015. Physical demand in our corner of the market has picked up sharply this week, as buyers who have been on the sidelines for many months have reemerged globally. U.S equities are under pressure this morning, which may inspire a few of the shorts in our market to cover positions and lock in a profit before the weekend.
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