By NewsBlogger Gold and silver prices are influenced by economic conditions, Fed policy expectations, geopolitical tensions, and technical indicators, with gold showing strength and silver facing selling pressure.
At a glance
- Gold price remains steady above mid-$2,100s in early Asian trading hours
- Fed Chairman hints at potential rate cuts in 2024
- Geopolitical tensions in Ukraine impacting gold price
- Silver facing selling pressure in European session
- Market sentiment leans towards Fed initiating interest rate cuts in June
The details
Gold and Silver Prices React to Economic Conditions and Geopolitical Tensions
Gold price (XAU/USD) remains steady above the mid-$2,100s in early Asian trading hours on Monday.
Traders are closely watching the possibility of the US Federal Reserve (Fed) cutting rates later this year.
The recovery of the gold price is supported by the higher likelihood of interest rate cuts by the Fed.
Fed Chairman Jerome Powell has hinted at three potential rate cuts in 2024.
Currently, gold price is trading around $2,168, gaining 0.15% on the day.
The Fed recently kept the benchmark interest rate unchanged for the fifth consecutive meeting at a range of 5.25% to 5.50% after the March meeting.
Investors have priced in a 72% likelihood that the Fed will start cutting rates in the June meeting.
Geopolitical tensions in Ukraine
highlighted by the recent attack on an underground gas storage facility by Russian missiles, are also impacting the gold price.
Ukraine President Volodymyr Zelenskiy has mentioned efforts to restore power supply in several locations, with Kharkiv, Ukraine’s second-largest city, facing challenges.
Silver (XAG/USD) facing selling pressure
and is near the mid-$24.00s in the European session.
The technical setup suggests a bearish tilt for silver, with potential for a decline towards $24.00 and then $23.85, followed by a confluence of the 61.8% Fibonacci retracement level and the 200-day SMA at $23.35.
Investors are closely monitoring upcoming US GDP growth numbers for Q4 and inflation readings.
Stronger-than-expected data could support the US Dollar and weigh on US Dollar-denominated gold.
The market sentiment leans towards the Fed initiating interest rate cuts starting in June, which may impact the prices of both gold and silver.
Overall, the prices of gold and silver are reacting to a combination of economic conditions, Fed policy expectations, geopolitical tensions, and technical indicators.
It is crucial for traders to stay informed and monitor the latest developments in the market.
Market participants should pay close attention to upcoming economic data releases and geopolitical events to navigate through the current uncertainties in the precious metals market.
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| fxstreet.com |
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| – Gold price (XAU/USD) holds above the mid-$2,100s during early Asian trading hours on Monday – Recovery of gold price is bolstered by higher possibility of US Federal Reserve (Fed) cutting rates later this year – Traders await US Gross Domestic Product (GDP) numbers for Q4 for fresh impetus, estimated to remain steady at 3.2% – Gold price currently trades around $2,168, gaining 0.15% on the day – Fed left benchmark interest rate unchanged for fifth consecutive meeting at 5.25% to 5.50% range after March meeting – Fed Chairman Jerome Powell hinted at three interest rate cuts in 2024, fueling investor demand for gold – Investors have priced in 72% odds that Fed will start cutting rates in June meeting – Escalating geopolitical tension in Ukraine might boost safe-haven flows, benefiting gold price – Underground gas storage facility in Ukraine attacked in latest round of Russian missile attacks on power facilities – Ukraine President Volodymyr Zelenskiy said attempts to restore power supply underway in several locations – Most challenging situation in Kharkiv, Ukraine’s second-largest city – Gold traders will closely watch US GDP growth numbers Annualized for Q4 – Stronger-than-expected data in US GDP report could support Greenback and weigh on US Dollar-denominated Gold – Markets will be closed for Good Friday on Friday |
| fxstreet.com |
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| – Gold price rises to near $2,170 per troy ounce – Increase in Gold prices attributed to weaker US Dollar influenced by Federal Reserve’s stance on interest rates – Market sentiment leans towards Fed initiating interest rate cuts starting in June – Federal Reserve Chair Jerome Powell mentioned unexpected rise in unemployment could lead to consideration of lowering interest rates – Powell reassured markets Fed would not hastily respond to consecutive months of elevated inflation figures – |
| Recent indications from Fed policymakers suggest anticipation of reducing interest rates by three-quarters of a percentage point by end of 2024 – Decline in US yields indicates shift in investor sentiment towards US Treasury bonds – 2-year and 10-year yields on US Treasury bonds holding steady at 4.60% and 4.21% – Investors may find relative safety and stability of bonds more attractive compared to Gold – Upcoming US inflation readings expected to impact prices of Gold – Gold traders will monitor release of GDP data for fourth quarter of 2023 and PCE price index report from US for insights into inflationary pressures and influence on Gold prices |
| fxstreet.com |
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| – Silver (XAG/USD) is experiencing selling pressure and is near the mid-$24.00s in the European session – Technical setup suggests a bearish tilt and potential for an extension of last week’s retracement slide – XAG/USD is below the $24.85-$24.80 horizontal support and the 23.6% Fibonacci retracement level – The slide stalled near $24.40, just before the 38.2% Fibo. level, which is a key pivotal point – Mixed oscillators on the daily chart suggest waiting for further selling below support before positioning for more losses – Potential for a corrective decline towards $24.00 and then $23.85, followed by $23.35 confluence of 61.8% Fibo. |
| and 200-day SMA – Break below $23.35 could trigger more bearish movement towards $22.45 support – Any recovery attempts may be capped near $25.00, with potential for short-covering rally towards $25.50 and beyond – YTD peak around $25.75-$25.80 region and December 2023 swing high near $26.00 could be further resistance levels |
