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Gold, silver sharply down amid scant risk aversion, technical selling

Kitco News

Kitco News has launched its 2021 Outlook, which offers the most comprehensive coverage of precious metals markets in the new year. Trillions of dollars were pumped into financial markets in 2020 and that won't come without consequences. Economists expect that investors will be Bracing For Inflation in 2021.

Live 24 hours gold chart [Kitco Inc.]

(Kitco News) - Gold and silver prices are sharply lower in late-morning trading Friday. Gold hit a three-week low and silver a two-week low. Heavy profit-taking pressure from the shorter-term futures traders is featured in both metals today, after they had established and enjoyed long positions during the near-term price uptrends in both. However, the near-term price uptrends on the daily charts have been negated in gold and silver today, which is also prompting the establishment of some new short positions from the futures traders.

The bearish fundamental of very little risk aversion in the marketplace at present is also working against the safe-haven metals. U.S. stock indexes Friday hit new record highs as traders and investors are upbeat about the global economic prospects in the second half of 2021.

A higher U.S. dollar index on the day is also a negative for the metals.

Also, it just could be that Bitcoin, which today hit a new record high and whose price has roughly doubled the past month, is stealing some of the trader/investor buying interest that would have in the past been directed to the safe-haven metals.

February gold was last down $54.40 at $1,859.60 and March silver was down $1.321 $25.93.

Live 24 hours silver chart [ Kitco Inc. ]

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.