At the beginning of Thursday’s U.S. session, spot gold broke the $1,800 mark, then continued to rise above $1,810/oz, up more than 1.3% during the day; spot silver continued to expand to 3%; COMEX silver futures jumped 3.01% during the day, now at $27.30/oz.
The wave of gold pull up or with the sudden influx of a number of large single. comex most active gold futures contract Beijing time on May 6 21:35 within a minute trading plate instantly traded 5163 hands, trading contracts worth a total of 930 million U.S. dollars; then at 21:39 within a minute trading plate and instantly traded 2075 hands, trading contracts worth a total of 375 million U.S. dollars; 21:47 Another 2,100 lots were traded on the buy and sell side within one minute, with a total value of $380 million.
The domestic market is also rising, with silver T+D up 3.02% intraday and now at 5633 yuan/kg.
While spot gold and silver rose, the U.S. dollar index dipped 10 points briefly to fall below the 91 mark; the yield on the U.S. 10-year Treasury note dipped slightly and is now at 1.57%.
Stephen Innes, managing partner at SPI Asset Management, said the Fed continues to dampen expectations of a rate hike, which is good for gold as it depresses U.S. bond yields.
Gold and silver prices jumped to their highest levels in about 10 weeks, driven by a continued weakening of the dollar and a slide in U.S. bond yields. Analysts predict gold prices are expected to extend the April rally because the Federal Reserve is expected to keep interest rates low, which helps boost the precious metal’s appeal.
In addition, gold’s inherent value preservation function may also stimulate the market’s demand for it. The 5-year break-even inflation rate, which reflects inflation expectations, has risen to its highest level since 2008 due to higher commodity prices.
Carlo Alberto De Casa, chief analyst at ActivTrades, said that if gold manages to break above the $1,800 per ounce resistance level, it will open up room for further gains.
Analysts at DailyFX believe that if spot gold is able to close above 1800, then a move to $1850 is likely to follow. In the process, there could be some strong resistance, with the 38.2% Fibonacci retracement level (1827) being a location to watch. A break above the 1831-1845 range would take gold back above the rising trend line from the March 2021 low, which could further solidify gold’s bullish momentum.
Recent Comments