Investing.com - Gold and silver prices continued to decline by 1:00pm AEST (03:00am GMT), with December gold futures reaching a 7-month low and December silver futures dropping to a 6.5-month low. A robust U.S. dollar, which reached a 10-month high, and surging U.S. Treasury yields, standing at a 16-year high, are negatively impacting the precious metals market.
However, despite the recent selloff, both markets are technically oversold and due for a substantial upside price correction soon.
The start of the trading week saw improved risk attitudes, which negatively impacted the safe-haven markets of gold and silver. Over the weekend, President Biden signed a stopgap measure to fund the federal government for 47 more days, averting a potential U.S. government shutdown. The Senate approved this measure after a strong push from House Democrats.
Asian and European stocks displayed mixed results overnight, with Asian shares mostly down and European shares mostly up. U.S. stock indexes are mixed at midday.
China reported slightly positive economic data over the weekend, with September witnessing the first expansion in activity since the spring. China’s manufacturing purchasing managers index (PMI) rose to 50.2 in September from 49.7 in August, indicating expansion. However, the metals markets overlooked this slightly positive news.
The Bank of Japan is reportedly keeping a close eye on the foreign exchange market as the yen continues to depreciate against the U.S. dollar.
In other key outside markets, crude oil prices are lower, while, the benchmark U.S. Treasury 10-year note yield currently stands at 4.695%, its highest since 2007.
December copper closed down 1,080 points at 362.95 cents today, marking a 5.4-month low close. The copper bears currently hold a solid overall near-term technical advantage.