(Kitco News, Wed. April 26th,2023) – Gold prices are trading right around unchanged in early U.S. dealings Wednesday. Silver prices are firmer. The precious metals markets are seeing buying support from a lower U.S. dollar index at mid-week. However, the bears are benefitting from weaker crude oil prices and a slight uptick in U.S. Treasury yields. June gold was last up $1.40 at $2,005.90 and May silver was up $0.248 at $25.13.

Global stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Focus of stock traders this week is on the release of quarterly corporate earnings reports. So far, they have been mixed.

Traders at mid-week are buzzing about First Republic Bank’s quarterly earnings report on Tuesday that was worse than expected, including a huge outflow of deposits. Reports said the bank’s conference call on its earnings was very brief, with no questions taken from reporters. That prompted a nearly 50% drop in the bank’s share price Tuesday, including trading in the stock being halted for a while.

U.S. and/or global recession fears appear to be moving back toward the front burner of the marketplace. Diesel fuel prices in the U.S. have plunged in recent months and are about half of what they were one year ago. Such suggests a slowdown in the commercial transportation sector that could be a signal of a slowing U.S. economy. United Parcel Service (UPS) on Tuesday issued a downbeat corporate earnings report, saying “macro conditions” would likely continue to pressure its delivery volume.

Gold remains well positioned to protect investors from further market turmoil – MarketVector’s Yang

In overnight news, Sweden’s central bank raised its main interest rate by 0.5%, saying inflation is still far too high.

The key outside markets today see the U.S. dollar index lower. Nymex crude oil prices are weaker and trading around $76.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.413%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, durable goods orders, advance economic indicators and the weekly DOE liquid energy stocks report.

Technically, the gold futures bulls have the firm overall near-term technical advantage. However, a six-week-old uptrend on the daily bar chart has stalled out. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $2,063.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the April low of $1,965.90. First resistance is seen at this week’s high of $2,014.50 and then at $2,028.00. First support is seen at $2,000.00 and then at this week’s low of $1,984.40.

The silver bulls have the overall near-term technical advantage. However, an uptrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing May futures prices above solid technical resistance at the April high of $26.235. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at this week’s high of $25.435 and then at last week’s high of $25.71. Next support is seen at last week’s low of $24.715 and then at this week’s low of $24.53.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com