(Kitco News) - Gold and silver prices are weaker again in early U.S. trading Tuesday. Trading has turned choppy and sideways the past few sessions as market participants assess the geopolitical landscape, with mixed notions on whether it’s bullish or bearish for the two precious metals. It’s becoming apparent the active gold and silver traders are awaiting a fresh, significant fundamental development that will push prices out of their recent trading ranges. June gold was last down $26.30 at $4,801.30. May silver prices were down $1.218 at $78.82.
Latest on the war in the Middle East…
--Kuwait declares further force majeure on oil shipments
--Citi sees oil at $110 if Hormuz disruption lasts another month
--Crude oil prices don’t presently reflect scale of the supply hit, analysts say
--UN agency prepares Hormuz evacuation plan for hundreds of ships
--Asia’s largest oil buyers are running low on Hormuz alternatives
“The U.S. made halting progress toward a second round of talks with Iran to end a war that’s spread through the Middle East, killed thousands of people and thrown energy markets into turmoil,” said Bloomberg today. President Trump said Vice President, JD Vance is ready to leave for negotiations in Islamabad but threatened to return to conflict if Iran doesn’t make a deal. For its part, Tehran didn’t confirm who, if anyone, would travel to the Pakistani capital. Parliament Speaker Mohammad Bagher Ghalibaf, who led Iran’s delegation during the first round of talks earlier this month, said his country would not “accept negotiations under the shadow of threats.” Trump said a two-week ceasefire with Iran will end on Wednesday evening Washington time and has signaled he is unlikely to extend it.
Fed chair nominee Warsh heads for the Hill… Kevin Warsh will appear before the Senate Banking Committee this morning for a confirmation hearing to chair the Federal Reserve, facing questions on issues including Fed independence and the interest rate outlook. Warsh's views on interest rates and his record as an inflation hawk will be scrutinized, as well as a Department of Justice investigation into a building renovation project at the Fed. Lawmakers may also ask about Warsh's plans for the Fed's balance sheet, his stance on regulations for the financial industry, and his personal wealth, which includes assets worth at least $192 million.
The key outside markets see Nymex WTI crude oil prices weaker and trading around $88.00 a barrel. The U.S. dollar index is a bit firmer. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.25 percent.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
Technically, June gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,500.00. First resistance is seen at the overnight high of $4,854.80 and then at $4,900.00. First support is seen at this week’s low of $4,752.00 and then at $4,700.00. Wyckoff's Market Rating: 6.0.
May silver futures bulls’ next upside price objective is closing prices above solid technical resistance at $85.00. The next downside price objective for the bears is closing prices below solid support at $70.00. First resistance is seen at this week’s high of $80.755 and then at last week’s high of $83.245. Next support is seen at $77.00 and then at $75.00. Wyckoff's Market Rating: 6.0.
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