Today, gold prices are slightly down and have been moving up and down, while silver prices are up in US trading on Wednesday. Both markets seem to be taking a break as traders and investors are uncertain and thinking about what might happen next in the Middle East, which has been pretty unstable lately. In June, the price of gold was last seen down by $6.50 at $2,401.70, and in May, the price of silver was last seen up by $0.249 at $28.635
The tensions in the Middle East, especially between Iran and Israel, are getting a lot of attention in the markets. Traders and investors are mostly focused on what might happen next in this situation, putting other factors like supply and demand and economic basics on hold for now. This focus on the Middle East has caused gold and silver prices to go up recently because people are buying them as a safe investment, even though other factors like rising US Treasury yields, a strong US dollar, and the Federal Reserve’s stance are usually not good for gold and silver prices.
Federal Reserve Chairman Jerome Powell recently talked about US monetary policy and said that inflation is still a problem. This makes it uncertain if the Fed will lower interest rates this year like some people thought. He hinted that interest rates might stay high for longer to bring inflation down to a level the Fed is comfortable with. After Powell’s comments, US Treasury yields went up to their highest levels in five months. This usually isn’t good for gold and silver prices, but right now, the tension in the Middle East is more important.
Other news from broker SP Angel says that central banks are buying about 25% of all the gold produced each year. This is the highest level since the early 1970s when there were big changes in international finance.
In the broader markets today, the US dollar is a bit lower after going up a lot on Tuesday. Crude oil prices are down and trading at around $84.50 a barrel. The yield on the 10-year US Treasury note is about 4.6%.
“Looking at the technical side, the bulls who support June gold futures have a strong advantage in the short term. There’s been an upward trend for about two months now, which is a good sign for them. Their goal is to make the price go above a tough barrier at $2,500.00. On the other hand, the bears who oppose the gold futures want to push the price down below a strong support level at $2,300.00 in the short term. The first challenge for the bulls is to break through resistance at $2,425.00, and then at the highest price reached so far, $2,448.80. The first support level is at today’s lowest price of $2,389.00, and then at Tuesday’s lowest price of $2,379.20. According to Wyckoff’s Market Rating, the situation is rated as 9.0, indicating strong support for the bulls.”
“In simple terms, the bulls who support May silver futures have a strong advantage in the short term. There’s been an upward trend for about two months now, which is a good sign for them. Their goal is to make the price go above a tough barrier at $30.00. On the other hand, the bears who oppose silver futures want to push the price down below a strong support level at $26.00 in the short term. The first challenge for the bulls is to break through resistance at this week’s highest price of $29.10, and then at $29.50. The first support level is at $28.00, and then at this week’s lowest price of $27.665. According to Wyckoff’s Market Rating, the situation is rated as 8.5, indicating strong support for the bulls.
As for May N.Y. copper, the bulls supporting it have a solid advantage in the short term as well. There’s been an upward trend for about two months now, which is a good sign for them. Their goal is to make the price go above a tough barrier at 450.00 cents. On the other hand, the bears who oppose copper futures want to push the price down below a strong support level at 415.00 cents in the short term. The first challenge for the bulls is to break through resistance at this week’s highest price of 439.65 cents, and then at 445.00 cents. The first support level is at this week’s lowest price of 427.05 cents, and then at 420.00 cents. According to Wyckoff’s Market Rating, the situation is rated as 8.0, indicating strong support for the bulls.”
