SLV - Gold slumps below $1900 to six-month low as dollar Treasury yields surge

2023-09-27 17:55:36 ET

• Gold futures extended declines for a third straight session Wednesday, as the prospects of higher-for-longer interest rates sent investors to the safety of the dollar.
• The ICE U.S. Dollar Index rose 0.4% to trade near 106.70, after hitting its highest intraday level since November 30,
• Front-month Comex gold ( XAUUSD:CUR ) for September delivery ended -1.5% to $1,871.60/oz, its lowest settlement value since March 10, while front-month September silver (XAGUDS:CUR) closed -2% to $22.477/oz.
• ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ), ( SLVP )
• "As long as the narrative remains higher-for-longer, it's going to continue pressuring precious metals ," TD Securities analyst Ryan McKay said, adding that gold's break below $1,900/oz also triggered technical selling.
• Rates on 2-, 10- and 30-year Treasurys have all jumped by more than a full percentage point each from their 2023 lows, they closed Wednesday at 5.142%, 4.625% and 4.731%, respectively.
• On the flip side, gold continued to find some support from strong physical demand, especially from central banks and in China, although "the near-term dynamics are certainly the Fed," McKay said.

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