Gold and Silver Prices Slightly Lower Amid Lack of Fresh News
In early U.S. trading Wednesday, gold and silver prices are slightly lower as traders engage in some backing and filling on the charts. The lack of major, fresh fundamental news in the marketplace at mid-week is contributing to this slight decline. It is important to note that bearish “outside-market” forces, including a firmer U.S. dollar index and lower crude oil prices, are working against the precious metals market bulls today.
June gold was last down $2.20 at $2,322.00, while July silver was last down $0.059 at $27.485. Asian and European stock indexes were mixed to weaker overnight, with U.S. stock indexes pointing toward slightly lower openings as the New York day session begins. The recent upside momentum in U.S. stock indexes may have an impact on the movement of gold and silver prices in the coming sessions.
Fed Comments and Global Developments
In overnight news, Minneapolis Federal Reserve Bank President Neel Kashkari took a hawkish stance on U.S. monetary policy by suggesting that the central bank is likely to keep rates unchanged for an extended period of time. The market will be closely monitoring any additional comments from Fed officials for further insights into the future direction of interest rates.
Additionally, Sweden’s central bank, Riksbank, decided to cut its main interest rate by 0.25% to 3.75%, which could have implications for global financial markets. Meanwhile, reports indicate that China’s central bank continues to add to its gold reserves, although the pace of buying has slowed recently.
Key Market Indicators
The U.S. dollar index is firmer, while Nymex crude oil prices are down, hitting a nearly two-month low. The yield on the benchmark 10-year U.S. Treasury note is at 4.46%. These key outside market indicators could influence the movement of gold and silver prices throughout the trading day.
On the economic data front, the release of the weekly MBA mortgage applications survey, monthly wholesale trade data, and the weekly DOE liquid energy stocks report could provide further insights into the health of the U.S. economy and its potential impact on the precious metals market.
Technical Analysis and Price Levels
From a technical perspective, gold futures bulls currently have the overall near-term technical advantage, while silver bulls have a slight overall advantage. It is important to note that both gold and silver prices remain in a downtrend on the daily bar chart, indicating potential downside risks.
Gold futures bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00, while silver bulls aim to close July futures prices above solid technical resistance at $29.00. On the downside, bears in the gold market are eyeing prices below solid technical support at $2,250.00, with silver bears looking to push prices below last week’s low of $26.255.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
