(Kitco News) - Gold and silver prices are lower in midday U.S. trading Thursday, after gold hit a record high of $3,371.90, basis June Comex futures, in overnight trading. Profit taking from the shorter-term futures traders ahead of a three-day holiday weekend was featured in the two metals. Most North American and European markets are closed for Friday for the Good Friday Easter holiday. June gold was last down $24.80 at $3,321.50. May silver prices were last down $0.52 at $32.45.
The marketplace is still buzzing about Federal Reserve Chairman Jerome Powell’s speech in Chicago Wednesday afternoon, where he leaned hawkish in his comments, including saying trade tariffs could produce higher inflation and higher unemployment. Powell also indicated he is worried about stagflation, which is sticky inflation and slower economic growth. U.S. stock markets sold off after Powell’s remarks. President Trump posted on his social media account that Powell’s comments were a complete mess and that Powell should be terminated.
The European Central Bank cut its main interest rate by 0.25% today, which was expected.
The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil futures prices are sharply up and trading around $64.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.327%.
Technically, June gold futures bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,350.00 and then at the overnight contract high of $3,371.90. First support is seen at today’s low of $3,296.40 and then at $3,250.00. Wyckoff's Market Rating: 9.0.
May silver futures bulls have the overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.00. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at $33.00 and then at this week’s high of $33.175. Next support is seen at $32.00 and then at this week’s low of $31.655. Wyckoff's Market Rating: 6.5.
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