Gold and silver prices saw a slight increase in early U.S. trading on Thursday, as the U.S. dollar index fell and Treasury yields remained stable. April gold was up $5.20 at $2,039.50, while March silver was up $0.226 at $23.125.
In overnight trading, Asian and European stock markets were mixed but mostly firmer. Japan’s Nikkei stock index hit a record high for the first time in 34 years, with U.S. stock index futures set to open higher when the New York day session begins.
Euro zone reported a slightly higher January consumer price index of 2.8% and the Euro zone composite purchasing managers index (PMI) for February came in at 48.9, slightly above market expectations.
The U.S. dollar index is lower, with Nymex crude oil prices near steady at around $78.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is also stable at 4.307%.
Technically, gold futures bears have a slight overall near-term technical advantage. Prices are in a 2.5-month-old downtrend on the daily bar chart. Silver bears also have the overall near-term technical advantage, with a nine-week-old downtrend being negated to suggest a market bottom is in place.
Insight: Gold and silver prices are up on Thursday, mostly driven by a lower U.S. dollar index and stable U.S. Treasury yields. This reflects a trend towards safe-haven assets. The rise in precious metals prices is also impacted by geopolitical tensions and higher inflation, which has boosted demand for safe-haven assets, such as gold and silver. Additionally, the upward trend in Asian and European stock markets is also supporting upward movement in gold and silver prices. Investors are closely monitoring economic data as well as the U.S. Federal Reserve officials’ speeches to assess the direction of the commodities market. Overall, the outlook for gold and silver remains positive in the near term, fueled by ongoing market uncertainty and the desire for safe-haven assets.
