{"id":49520,"date":"2024-03-06T08:30:48","date_gmt":"2024-03-06T08:30:48","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=49520"},"modified":"2024-03-06T08:30:48","modified_gmt":"2024-03-06T08:30:48","slug":"gold-soars-as-ust-yields-fall","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2024\/03\/06\/gold-soars-as-ust-yields-fall\/","title":{"rendered":"Gold soars as UST yields fall"},"content":{"rendered":"

The S&P 500 has retraced to test short-term support at 5050, accompanied by a retreat in the Equal-Weighted Index and Russell 2000 Small Caps. The outlook remains bullish, however, with Trend Index troughs high above zero signaling extraordinary buying pressure.<\/p>\n

\"S&P<\/p>\n

Bond market anticipation of June rate cuts is growing. 10-Year Treasury yields broke support at 4.20%, signaling a decline to test support at 3.80%.<\/p>\n

\"10-Year<\/p>\n

Gold is at a new high of $2129 per ounce. We expect retracement to test support at $2080 but respect would offer a ST target of $2180 per ounce.<\/p>\n

\"Spot<\/p>\n

\"Gold<\/p>\n

Economic Activity<\/h2>\n

ISM Services PMI recorded its 14th month of expansion in February, retreating to 52.6% from 53.4% in January. The decline suggests continued but slower growth.<\/p>\n

\"ISM<\/p>\n

Crude & Commodities<\/h2>\n

Nymex WTI light crude continues to respect resistance at $80 per barrel. Breach of $78 would suggest a correction to the ascending trendline at $75.<\/p>\n

\"Nymex<\/p>\n

Copper continues to test resistance at $8500 per metric ton, indicating some resilience in the Chinese economy — by far the biggest buyer of industrial metals.<\/p>\n

\"Copper\"<\/p>\n

In China, Caixin Services PMI eased to 52.5 in February, from 52.7 in January — maintaining the expansion since January last year.<\/p>\n

\"Caixin<\/p>\n

Earlier, Caixin Manufacturing PMI edged up to 50.9, compared to 50.8 in January. But whipsawing around 50 indicates poor and erratic growth which is affecting metals prices.<\/p>\n

\"Caixin<\/p>\n

Iron ore continues to test support at $114 per metric ton. Breach would warn of another test of $100. The Chinese government is likely to do enough to keep the economy from collapse but does not have the means to stimulate on a large scale.<\/p>\n

\"Iron<\/p>\n

Conclusion<\/h2>\n

The 10-year treasury yield is expected to test support at 3.80%, offering further upside for Gold.<\/p>\n

Our short-term target is $2180 per ounce and our long-term target is $2450.<\/p>\n

Acknowledgements<\/h4>\n