Gold and silver prices remained stable to slightly lower in early U.S. trading on Tuesday. There were no significant new fundamental developments to drive daily price action, leaving the metals market bulls feeling a bit disoriented following a stronger-than-expected U.S. jobs report on Friday. April gold dropped by $1.20 to $2,041.70, while March silver fell by $0.072 to $22.35.
Asian and European stock markets showed mixed to firmer performances in overnight trading. U.S. stock index futures are expected to open narrowly mixed, not far below their record highs when the New York Day session begins.
Tensions in the Middle East are still at the forefront of the marketplace, with the U.S. escalating retaliatory attacks on the Houthi rebels. There is also ongoing talk of an imminent cease-fire in the Israeli-Hamas war.
As per overnight news, Australia’s central bank has kept its monetary policy unchanged, but mentioned that future interest rate increases cannot be ruled out. The Reserve Bank of Australia also stated that it will take some time before inflation sustainability reaches the RBA’s target range.
The U.S. dollar index is slightly higher, and Nymex crude oil prices are slightly firmer, trading around $73.00 a barrel. Additionally, the yield on the benchmark 10-year U.S. Treasury note stands at 4.154%.
U.S. Treasury Secretary Janet Yellen is scheduled to testify at a U.S. House of Representatives financial hearing. Economic data due for release on Tuesday is light and includes the weekly Johnson Redbook retail sales report, as well as the RCM/TIPP economic optimism index.
From a technical perspective, gold futures bulls have a slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,100.00, while bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00.
As for silver prices, the bears have the overall near-term technical advantage as prices remain in a two-month-old downtrend on the daily bar chart. Silver bulls’ next upside price objective is closing March futures prices above solid technical resistance at $23.72, while the next downside price objective for the bears is closing prices below solid support at the October low of $21.17.
Insight: Despite steady to lower gold and silver prices, the overall economic and geopolitical landscape continues to play a significant role in influencing market sentiment. Notably, the ongoing Middle East tensions and fears of inflation remain key factors affecting the precious metals market. Additionally, the varying performances of stock markets worldwide could create some uncertainty for investors and traders. As market participants continue to navigate these conditions, careful attention to upcoming economic data, political developments, and central bank decisions will be necessary.
