Precious metals crater, dollar strengthens notably

By Peter Bukov|

Published: September 17 2021, 08:35 GMT+0

Precious metals crater, dollar strengthens notably

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Thursday saw some massive selling in precious metals, sending silver 4% lower. Gold also plummeted to one-month lows below 1,750 USD.

The negative sentiment persists in the metals as the Fed should soon be ready to taper its monthly asset purchases. However, monetary policy will remain extra loose, but precious metals are not tempting for investors. Generally speaking, equity indices have outperformed metals many times in this inflationary environment. 

From other news, the EURUSD pair fell to 1.1750, and it looks like the recent breakout from the falling wedge pattern will be invalidated soon as the euro is lacking bullish momentum, having dropped below the 50-day moving average at 1.18.

Later in the day, European CPI revisions are due, with inflation most likely staying way above the official 2% target, prompting ECB to taper its “emergency” bond-buying program.

Elsewhere, Fridays are usually positive for equities, and yesterday’s bullish reversal could bring more bullish sentiment today. However, equity indices have been struggling recently, undermined by the tapering fears and delta spreading, but the long-term uptrend remains intact for all indices. 

Source: https://www.axiory.com/market-news/precious-metals-crater-dollar-strengthens-notably

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