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(Kitco News) - Gold and silver prices are sharply lower in early U.S. trading Wednesday, amid bearish outside market forces at mid-week that see a higher U.S. dollar index, rising U.S. Treasury yields and a drop in crude oil prices. Gold and silver bulls need to step up and show power soon in order to keep their firm near-term technical advantage. June gold was last down $35.90 at $1,983.70 and May silver was down $0.478 at $24.785.
Global stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. Some hawkish Fed-speak Tuesday has dampened trader and investor spirits at mid-week, including metals traders. Non-voting members of the FOMC argued in favor of higher U.S. interest rates for longer. Fed Bank of Atlanta President Rapahel Bostic told CNBC he would like to see one more rate hike and then hold rates above 5% for a period of time to cool down inflation. Meantime, Fed Bank of St Louis President James Bullard told Reuters recession fears are overblown and that he supports U.S. rates to rise into a 5.5-5.75% range--up from the current 4.75-5.0%. The banking turmoil of a few weeks ago settled down due in part to notions the Federal Reserve may be less hawkish due to the banking worries and the risk of a U.S. recession. The hawkish rhetoric from Fed officials may once again raise the specter of more banking problems that may come with higher interest rates. Reads a Wall Street Journal headline: "Few lenders hedged against risk of Fed rate increases."
In overnight news, Euro zone consumer price inflation in March rose 6.9%, year-on-year, which was right in line with market expectations.
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The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $79.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.616%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report and the Federal Reserve's beige book.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls still have the firm overall near-term technical advantage but are fading. Prices are still in a five-week-old uptrend on the daily bar chart, but the bulls need to show fresh power soon to keep it alive. 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 $2,000.00 and then at the overnight high of $2,020.30. First support is seen at $1,975.00 and then at $1,965.90. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the firm overall near-term technical advantage but are fading a bit. Prices are still in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $27.00. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at $25.00 and then at the overnight high of $25.375. Next support is seen at $24.50 and then at $24.00. Wyckoff's Market Rating: 7.0.
