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(Kitco News) – Gold and silver prices are slightly weaker at the start of the US session on Wednesday, following further downward corrective action after recent gains. A rally in US equity indices over the past two days is also bearish for safe-haven metals. June gold futures last fell $6.30 to $1,952.80 and May silver Comex last fell $0.091 to $25.30 the ounce.
Global equity markets were mixed overnight. US stock indices are trending towards higher opens as the day’s session in New York begins. US stock indices have stabilized but are still in a short-term downtrend. Stock traders are currently focused on corporate earnings reports. Risk appetite is still not strong in the market amid the Russian-Ukrainian war and the Covid outbreak in China.
Nymex crude oil futures prices are firmer today and are trading around $104.00 per barrel. The US Dollar Index is significantly lower today after hitting a two-year high on Tuesday. The closely watched 10-year Treasury yield is currently at 2.57%, well below levels seen earlier this week.
US economic data due out on Wednesday includes the weekly survey of MBA mortgage applications, existing home sales, the DOE’s weekly liquid energy inventory report and the Federal Reserve’s beige book.
Technically, June gold futures bulls have the overall short-term technical advantage. The Bulls’ next upside price objective is to produce an April futures close above major resistance at $2,000.00. Bears next short-term downside price objective is to push futures prices below strong technical support at $1,915.00. The first resistance is seen at $1,975.00 and then at $2,000.00. First support is seen at the overnight low of $1,941.00 and then at $1,928.00. Wyckoff Market Rating: 7.0
May futures bulls on silver have the overall short-term technical advantage of the company. The next upside price objective for silver bulls is to close prices above strong technical resistance at the March high of $27.495 an ounce. The next downside price objective for the bears is to close prices below the strong support at $24.00. First resistance is seen at $26.00 and then Tuesday’s high at $26.195. The next support is seen at $25.00 and then at $24.50. Wyckoff Market Rating: 7.0.
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