Gold and silver got slammed last week—both down ~3% after Warsh went full hawk at Jackson Hole.
$GOLD -3.22%
$SILVER -3.80%
Both bounced hard off major support earlier in the week. Gold held $4,000. Silver held $55. Then they faded into the close.
Why? The 2-year yield ripped +2.83% and printed a fresh high. That's your Fed pricing mechanism. Warsh's tone pushed September hike odds higher. Front-end yields followed.
Meanwhile, the 30-year pulled back -1.19% after tagging a 19-year high on the double buyback news. Still sitting near those highs though.
When the 2-year runs, metals lose the bid. That's exactly what played out.
Support still intact for now. Watch yields today.
$GOLD -3.22%
$SILVER -3.80%
Both bounced hard off major support earlier in the week. Gold held $4,000. Silver held $55. Then they faded into the close.
Why? The 2-year yield ripped +2.83% and printed a fresh high. That's your Fed pricing mechanism. Warsh's tone pushed September hike odds higher. Front-end yields followed.
Meanwhile, the 30-year pulled back -1.19% after tagging a 19-year high on the double buyback news. Still sitting near those highs though.
When the 2-year runs, metals lose the bid. That's exactly what played out.
Support still intact for now. Watch yields today.
