- Gold prices trim daily losses as the dollar soars on risk aversion.
- US yields collapse amid fears of a recession.
- Silver also rebounds, down “just” 2.60%.
Metals rebounded during the American session, amid a collapse in US yields. The rally in Treasuries boosted gold that dragged silver to the upside. XAU/USD is hovering around $1,800/oz, far from the daily low.
Yields tumble helping gold that helps silver
US yields spiked to the downside. The US 10-year dropped to as low as 2.79%, the lowest since late May (earlier on Friday, it traded above 3.00%), while the 30-year tumbled to 3.02%.
Recession fears are softening Fed’s tightening expectations. The bond market on Friday is showing more concerns than the equity market. In Wall Street, the Dow Jones is falling by 0.56% and the Nasdaq by 0.49%.
The sharp slide in yields pushed gold back above $1,800, alleviating the bearish pressure. XAU/USD bottomed at $1,784, the lowest since late January. It is still down for the day and about to post the lowest weekly close in months. The area around the 2022 low at $1,780 is a critical support.
Silver also trimmed losses dragged to the upside by gold. XAG/USD bottomed at $19.38, level not seen since July 2020 and it is trading at $19.75, down 2.60%. Price is under the 200-week Simple Moving average for the first time since May 2020.
Technical levels
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