Gold, silver bounce as USD, Treasury yields decline

9.8.22 - Gundlach: 'The Period of Abundance Is Over'

Gold last traded at $1,707 an ounce. Silver at $18.51 an ounce.

NEWS SUMMARY: Precious metal prices drifted lower Thursday as hawkish Fed comments boosted the dollar. U.S. stocks attempted to rebound as investors shook off concerns about higher interest rates.

KITCO--"Gold and silver prices are higher and near daily highs in midday U.S. trading Wednesday, on short covering in the futures markets and perceived bargain hunting in the cash markets, following recent losses.

The U.S. dollar index and U.S. Treasury yields backed down from their higher levels today, which also encouraged some buying interest in the metals markets. However, a big drop in crude oil prices to an eight-month low today did limit the upside in the precious metals.

U.S. stock indexes are higher at midday but still trending down on the daily charts. Risk aversion remains somewhat elevated in the general marketplace. China reported today its imports and exports fell more than the trade expected in August as the world's second-largest economy continues to stall amid Covid lockdowns, a wobbly property market and a weaker yuan.

'The headwinds facing the Chinese economy are becoming increasingly fierce and recent efforts to shore it up have appeared inadequate,' said an email dispatch from analyst Craig Erlam with OANDA....

The key outside markets today see Nymex crude oil prices sharply lower and trading around $82.65 a barrel. The U.S. dollar index is a bit weaker after hitting another 20-year high in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching around 3.2%."