Click here to download Gold and silver are pushing higher in early European
Gold and silver are pushing higher in early European trading as the greenback fails to gain traction alongside a slump in US 10 year yields. A light economic docket in the session ahead may leave the US Dollar uninspired by a lack of positive news-flow, which may afford the precious metals some further gains. Meanwhile, crude oil may be exposed to a pullback on broad-based risk aversion as investors question the sustainability of present levels for US equity benchmarks.
US Dollar Slump Affords Gold Some Breathing Room
A persistently weak greenback has likely underpinned elevated levels for the precious metals in recent trading. A timid stance from Fed officials on potential rate rises over recent weeks has likely put pressure on US 10 yields, with the benchmark lending rate sinking to the lowest level since September 2013 on Friday. This has detracted from the US Dollar’s attractiveness from a yield standpoint, and has likely helped support gold and silver prices. Until we see a more hawkish stance from FOMC officials, the greenback may continue to flounder, which in turn may grant a further rise in prices for the precious metals.
Click here to download Gold and silver are pushing higher in early European
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