Mid-week Plunge for Gold and Silver
Gold and silver prices are recorded to be on the decline during the early trading hours on Wednesday in the U.S, with gold hitting a 3.5-month low. These trends don’t seem to be swayed by a lack of fundamental news that could potentially move the market. Interestingly, traders seem to be predominantly concerned about precious metals’ chart patterns, which appear increasingly bearish.
Markets Notably Mixed Overnight
A mixed state was observed on the Asian and European stock markets. U.S stock indexes not showing definitive direction at the start of the day with the New York session. This uneventfulness can be due to the muted risk aversion despite the swiftly managed Russian insurrection or possibly the pre-holiday mood as Independence Day draws closer.
Central Bankers Anticipated Appearance
The market looks forward to the appearance of heads of leading financial establishments. Among them include the Federal Reserve’s Jerome Powell, Christine Lagarde of the European Central Bank, Bank of England governor Andrew Bailey, and Kazuo Ueda representing the Bank of Japan. All these financial experts will take part in an ECB forum discussing central banking. The spotlight will undoubtedly be on their respective statements, where an unexpected comment could potentially sway the markets.
Unsteady International Economic State
Australia’s May consumer price index shows a decrease from previous inflation rates. Outside influences such as the U.S dollar index show a bit of stability while Nymex crude oil prices increase and trade around $68.25 a barrel.
Near-term Technical Advantage
For upcoming weeks, gold futures have a technical advantage. If the gold bulls can reach past the resistance at $2,000.00, things could change for the better. On the silver side, the trading is in favor of silver bears with a six-week-aged downtrend visible on the daily bar chart. The silver bulls, however, are not without hope, as their aim is at closing July futures prices above the resistance at $24.00.
