The near-term technical postures for both metals have deteriorated this week, as price uptrends on the daily charts have been negated, which is also inviting some technical selling by the shorter-term futures traders.
jobless claims report showed 553,000 new claims, compared to expectations of 528,000 in new claims. Markets showed little reaction to these reports that came in close to market expectations.
central bank keep its monetary policy very accommodative, and also after President Biden’s Wednesday evening address to Congress, in which he laid out plans for a massive $1.8 trillion economic stimulus program.
The “reflation trade” has yet to significantly boost gold and silver prices, however, as traders are apparently assigning more market weight to those metals’ safe-haven status amid little risk aversion in the marketplace, as opposed to viewing the metals as a hard-asset hedge against inflation.
The gold bulls have lost their overall near-term technical advantage as a four-week-old uptrend on the daily bar chart has been negated.
Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce.
Prices closed nearer the session low today on mild profit taking after hitting a contract and nearly 10-year high early on today.