Gold drops 1.5% as rising oil pressures precious metals

A nearly 3% increase in oil futures today is putting pressure on precious metals prices and supporting ongoing profit-taking after the recent rebound in the metals market. Yields on U.S. Treasuries are rising today by more than 2 basis points for both 10-year and 5-year bonds. The U.S. dollar index has had a “strong” run, rebounding from 98 to 98.55 over the past several hours. GOLD, SILVER, OIL charts (H1) Gold has pulled back from nearly $4,900 to $4,600 per ounce, and it appears that if this trend continues, levels around $4,300–$4,400 per ounce cannot be ruled out.

Source: xStation5 Silver has declined by 12% from its local highs and is hovering near $73 per ounce – about 40% below the $120 per ounce seen at the turn of January and February.

Source: xStation5 Oil prices have dropped from around $112 to approximately $103.7 per barrel, following a strong rebound from about $83 per barrel. The 71.8 Fibonacci level now appears to be acting as a significant resistance.

Source: xStation5