SMM1 March 11: the overall weak operation of today's futures market, precious metals continued to fall last Friday night low shock, early trading Shanghai silver futures main contract hit the limit price of 5075 yuan / kg, down 10%. As of press time, the main contract of the Shanghai Bank fell 9.49% to 5104, reducing more than 15000 positions. The main force of Shanghai Gold fell 3.8%, hitting a new low for the month.
Precious metals fell, especially silver. Mainly because 10-year US bond yields rose one after another and broke through the 1.1 per cent mark, the attractiveness of precious metals decreased, the cost of holding increased, and the price of gold and silver fell sharply.
Treasury yields rose rapidly after Friday's announcement of a non-farm shock, while Congress hinted at a bigger fiscal stimulus as soon as possible. As a result of the rebound in the epidemic, the US economy lost jobs for the first time in eight months in December, indicating that economic growth has severely weakened and may temporarily hinder the recovery. Non-farm payrolls in the United States fell by 140000 in December and are expected to increase by 50, 000, compared with a previous increase of 245000, data showed on Friday.
Rising US bond yields, record highs in US stocks and a rebound in the dollar have all dealt a blow to the attractiveness of precious metals to capital, causing them to fall out of favor in the short term.
In the long run, however, the US government has introduced more fiscal measures to re-stimulate inflation expectations, keeping real interest rates low to support precious metals prices. According to CFTC data, long positions in COMEX gold futures increased by 8134 to 349946 positions in the week ended January 5, while short positions in COMEX gold futures fell by 2312 to 70628 positions, and non-commercial net long positions increased by 10446 contracts to 279318 contracts, the highest since March 24, 2020.
