Another day, another slam down in the precious metals. Both gold and silver were down on Friday morning, although recovering from their overnight losses.
Most of the precious metals traders are probably used to massive smackdowns in gold and silver prices, coming out of nowhere. One of them happened during the Asian session when silver fell 25 in 5 minutes for no apparent reason before recovering most of the losses.
Gold is now down for seven consecutive days, and bears are totally in control of the market. Moreover, the bullion briefly fell below the November lows but so far failed to hold. Considering the oversold conditions, we might see a little squeeze higher, but the bear market remains intact for now.
Later in the session, the final PMI data for the EU will be released, most likely confirming a weakening of business confidence in January as the never-ending lockdowns to combat the Covid-19 virus were in place.
During the US session, Canadian retail sales are due, and investors will also focus on the US PMIs and existing home sales.
The 10-year yield has been consolidating for three days and was spotted just below the 1.3% level. Should yields continue to rise, it could crack the current rally in equities and help the USD rally higher.