WPM - GDX: Gold Miners Consolidating Ahead Of The Fed Real Yields Inch Up
2024-01-28 03:30:24 ET
Summary
- Gold prices are influenced by the path of real interest rates and the value of the US dollar, both of which have pressured the precious metal lately.
- Upcoming expected interest rate cuts by the US Federal Reserve and the European Central Bank may benefit gold, but the path higher may be rocky.
- The VanEck Gold Miners ETF has a fair valuation but an unimpressive technical setup, and I highlight key price levels to watch with the FOMC meeting on tap.
Gold prices often move alongside the path of real interest rates . Trends in the US dollar are also important – the lower the greenback goes, the higher precious metals can soar. Today, real rates are up from the start of the year while the dollar is conspicuously quiet near the 103 mark. The US 10-year Treasury note yield is off its late-2023 low of around 3.8%, but also significantly under the 5% mark touched last October. ...
GDX: Gold Miners Consolidating Ahead Of The Fed, Real Yields Inch Up