Gold tumbling. Yields not running higher, but higher.
The USD is trading at highest levels vs. EUR, JPY, CHF, CAD, AUD and NZD. The only major currency it is not trading at the high is the GBP. The BOE gone the way of that idea earlier today. Nevertheless the GBPUSD is off the highs. The GBP remains the strongest of the major currencies. Adam talks to the moves from a fundamental basis. Click here for his post
The price of gold is helping to contribute to the dollar strength. It is down around -$45 or -2.45% $1789. Silver is also sharply lower at $-0.75 more -2.8%. Looking at the daily chart below, the price has just cracked below a lower trendline today which coincidently cut lower at $1800. That is now resistance. The high price last week stalled just under the 100 day moving average (blue line currently at $1874.33). The inability to move back above that key moving average gave the sellers the go ahead 2 push lower. The next target comes in at the 50% retracement at $1763.51. That level was tested at the beginning of December.
US interest rates are not running higher but they are higher and have been trending higher. The 30 year moved above recent highs (trades at highs going back to March 2020) and is getting closer to the 2.0% level (the high yield reached 1.95% today). The 10 year yield is moving closer to its January high 1.1855%. Currently trades at 1.146%.
So far, the move higher in rates, and higher in the US dollar has not put a big damper on US stocks. The NASDAQ index is looking to close at a record all-time high level today. The Dow industrial average is currently up around 239 points or 0.70%. Financials are leading the way in the Dow 30. The S&P index is up 0.54%. Will those gains remain if yields start to extend above 2% any dollar continues to rise?
PS. The EURUSD that is moving closer to its 100 day moving average at 1.19569 (low for the they has reached 1.1966 so far).
