CGAU - Gold gains most in six weeks as Treasury yields slip from multiyear highs

2023-08-23 16:56:54 ET

• Precious metals miners rallied across the board Wednesday as gold and silver futures jumped, helped by a pullback in U.S. bond yields and the dollar.
• Benchmark 10-year Treasury yields slipped from near 16-year highs while the dollar fell after weak U.S. purchasing managers data.
• S&P Global's flash U.S. composite PMI index showed U.S. business activity is nearly stagnant in August, with growth at its weakest since February as demand for new business in the service sector contracted.
• Gold "was a little oversold ahead of itself, and we're getting a bounce on some bargain hunting and then short covering," helped by a slight drop in yields, RJO Futures analyst Bob Haberkorn told Reuters.
• Front-month Comex gold ( XAUUSD:CUR ) for August delivery closed +1.2% to $1,918.50/oz, its fourth straight gain and best one-day dollar and percentage increase since July 18, while front-month August silver ( XAGUSD:CUR ) jumped +4% to $24.363/oz, its fifth consecutive rise and strongest one-day dollar and percentage gain since July 12.
• ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( NYSEARCA: SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )
• Among major movers in the precious metals group: ( HMY ) +14.3% , ( HL ) +7.9% , ( EQX ) +6.7% , ( IAG ) +6.4% , ( CGAU ) +5.9% , ( AU ) +5.5% , ( EGO ) +5% , ( GFI ) +4.9% , ( CDE ) +4.9% , ( EXK ) +4.5% , ( AGI ) +4.3% , ( PAAS ) +4.2% , ( SSRM ) +4.1% , ( FSM ) +3.9% , ( KGC ) +3.8% , ( NG ) +3.7% , ( BTG ) +3.3% , ( MAG ) +3.2% , ( NGD ) +3.1% .
• Gold is still 2.5% lower for the month alongside the sharp rise in the 10-year Treasury yield.
• "U.S. nominal and real yields have moved higher reflecting a re-positioning from expectations of a 'hard-landing' scenario to expectations of a 'soft-landing' scenario of the U.S. economy," according to analysts at ICICI Bank.
• Market participants will focus on Federal Reserve Chair Jerome Powell's planned Friday speech at Jackson Hole for additional clues about the path for interest rates.

For further details see: