(Kitco News) - Gold and silver prices are just a bit lower in early U.S. trading Wednesday, on some backing and filling on the charts amid a lack of major, fresh fundamental news in the marketplace at mid-week. There are bearish “outside-market” forces working against the precious metals market bulls today: a firmer U.S. dollar index and lower crude oil prices. June gold was last down $2.20 at $2,322.00. July silver was last down $0.059 at $27.485.
Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed to toward slightly lower openings when the New York day session begins. The U.S. stock index bulls have regained upside momentum the past couple weeks.
In overnight news, Minneapolis Federal Reserve Bank President Neel Kashkari leaned hawkish on U.S. monetary policy by saying the central bank is likely to keep rates where they are “for an extended period of time.” Kashkari is not a voting member of the FOMC.
Sweden’s central bank, Riksbank, cut its main interest rate by 0.25% to 3.75%.
Reports said China’s central bank continues to stock up on gold reserves, adding 1.9 metric tons in April, making it 18 straight months for expanding its reserves. However, the reports said the pace of China gold buying has slowed.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are down, hit a nearly two-month low overnight and are trading around $77.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is fetching 4.46%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, the gold futures bulls have the overall near-term technical advantage. However, prices are still in a downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $2,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at the overnight high of $2,329.60 and then at this week’s high of $2,341.90. First support is seen at the overnight low of $2,311.40 and then at $2,300.00. Wyckoff's Market Rating: 6.5.
The silver bulls have the slight overall near-term technical advantage. However, prices are still in a downtrend on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $29.00. The next downside price objective for the bears is closing prices below solid support at last week’s low of $26.255. First resistance is seen at the this week’s high of $27.77 and then at $28.00. Next support is seen at the overnight low of $27.24 and then at $27.00. Wyckoff's Market Rating: 5.5
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