Gold And Silver Face Strong Pressure As Short-Term Yields Rise

Gold And Silver Face Strong Pressure As Short-Term Yields Rise

At the beginning of November, gold received strong support and moved from the $1775 level to the $1875 level on fears about rising inflation. At that time, gold ignored the strength of the U.S. dollar.

The U.S. dollar continued to move higher against a broad basket of currencies and finally managed to put pressure on gold. Dollar’s move was very significant. The U.S. Dollar Index started the month near the 94 level and has recently made an attempt to test the 97 level.

Gold reacted to the pressure from the rising dollar and declined from the $1875 level towards the $1775 level. Currently, gold is trading in the range between the support at $1775 and the resistance at $1800.