Gold drops a fifth day as bond yield rally delivers 'fatal blow' WED, FEB 17, 2021 https://www.bloomberg.com/news/arti...d-rally-delivers-fatal-blow?srnd=premium-asia Gold declined for a fifth straight day, putting the haven on course for the longest losing run in almost a year, as Treasury yields surged on expectations that the economy is recovering from the pandemic's impact. PHOTO: REUTERS [SINGAPORE] Gold declined for a fifth straight day, putting the haven on course for the longest losing run in almost a year, as Treasury yields surged on expectations that the economy is recovering from the pandemic's impact. Progress on the coronavirus vaccine front and the slowing pace of infections is driving optimism over global growth, boosting yields and weighing on demand for non-interest-bearing bullion, which has sunk more than 5 per cent this year. Further losses may be on the horizon after bullion's 50-day moving average retreated below its 200-day counterpart, a so-called death cross pattern. "A runaway rally in global bond yields has delivered a fatal blow to gold," said Edward Moya, senior market analyst at Oanda Corp. "Yields are rising on reflation bets, and that is triggering an unwind of many safe-haven trades." Spot gold fell as much as 0.4 per cent to US$1,786.88 an ounce, and traded at US$1,791.04 by 7.51am in Singapore. That follows Tuesday's 1.3 per cent drop, and should prices end lower on Wednesday that would be the worst run since last March. In other metals, silver and palladium retreated along with platinum, which hit the highest intraday level since 2014 on Tuesday. The Bloomberg Dollar Spot Index rose 0.1 per cent. "The dollar rebound might not be over if global bond yields continue to rally," said Oanda's Mr Moya. "And that could be the bearish catalyst that sends gold down to the US$1,750 level." BLOOMBERG
https://www.bloomberg.com/news/arti...ur-years-as-yields-in-focus?srnd=premium-asia Bloomberg) -- Gold steadied after its biggest monthly slump since late 2016 as investor focus remained on bond yields and the outlook for growth. Last week’s sell-off in global bonds stabilized after central banks from Asia to Europe moved to calm a panic that had sent Treasury yields to their highest level in a year. Bets on accelerating inflation are raising concerns that there could be a pullback in monetary policy support despite assurances from the Federal Reserve that higher yields reflect economic optimism for a solid recovery. “Bond markets continue to signal the end of the interest rate reduction cycle,” said Michael McCarthy, chief market strategist at CMC Markets. “If the inflationary pressures reflected by sharply lower bond prices are evident by mid-year, central banks will have little choice but to wind back their current support. A falling gold price shows that the main concerns are about higher rates, over-riding any safe haven attraction to the yellow metal.” Bullion’s had a rocky start to the year as the higher Treasury yields weighed on demand for the non-interest-bearing metal and as the roll-out of vaccinations worldwide spur optimism about a recovery from the pandemic. Over the weekend, the U.S. House of Representatives passed President Joe Biden’s $1.9 trillion Covid-19 aid package and the bill now heads to the Senate. Spot gold rose 0.4% to $1,741.55 an ounce by 9:14 a.m. in Singapore after slumping 2.1% on Friday. That brought the loss in February to 6.2%, the most since November 2016. Silver, platinum and palladium all climbed. The Bloomberg Dollar Spot Index fell 0.2%. ©2021 Bloomberg L.P.
To say that February's gold move was a disaster (the disaster actally began early January) for bulls would be an understatement. I hold several gold positions atm and it weighed me down underwater on my portfolio. Not panicking but. Monthly view
I'm seeing some green shoots appearing today, but I need to keep my trap shut, when I say green it goes red, when I say down it goes up. The gold goblins are watching me.
Don't do it Indy. Do not attempt to snatch the idol, or the Hovitos will shoot poison darts at you. Rather, go for the Ark because if you believe, it will not harm you.
Short term this Monday will tell the tale on Gold. Right at long term support, stimulus passed Senate, but markets looking bullish. This could move Gold in either direction hard. My preference in this kind of positive market bias is Copper, Silver, and Oil. Gold might be a better area closer to July. Silver is most interesting plenty of potential to run up but could be dragged by Gold.
I sold my last remaining Gold miner position today. So the bottom is probably in . I hold several Silver and Copper miners as preferred plays short term.