🌟Your Daily Gold Update - Afternoon Edition🌟

Hello and welcome to your afternoon news summary on precious metals. Without further ado, let's dive in.📊

GOLD 🥇

• Stable Pricing: Gold prices remain stable at around $1,960 per ounce. Despite this stability, the yellow metal is on track for its second consecutive weekly decline. This stability amidst a general declining trend suggests a cautious market sentiment.
• Technicals: On a daily time frame, gold has fallen below the 20-day Exponential Moving Average (EMA), indicating a correction. The near-term trend appears to be consolidating, as observed from the 50 and 200-day EMAs, which have now turned sideways.
• Influencing Factors: A major influence on gold's current price is the strengthening of the US dollar and an increase in Treasury yields. These economic shifts often move inversely to gold prices.
• Federal Reserve's Hawkish Stance: Recent hawkish signals from US Federal Reserve officials have significantly affected gold prices. Fed Chair Jerome Powell's recent comments show a lack of confidence in effectively controlling inflation, hinting at ongoing economic challenges.
• Potential Rate Hikes: Fed Governor Michelle Bowman's suggestion of further rate hikes adds to the pressure on gold prices. Such hikes typically strengthen the dollar, making gold more expensive for holders of other currencies.
• Inflation Uncertainty: Minneapolis Fed President Neel Kashkari's belief that it's premature to declare victory over inflation further complicates the market outlook for gold.
• Geopolitical Factors: The easing of geopolitical tensions in the Middle East has also reduced the demand for gold as a safe haven, affecting its price.

SILVER 🥈

• Spot Silver's Fall: Spot silver has experienced a decline, falling to around $22.5 per ounce. This drop mirrors the trends seen in the gold market.
• Economic Drivers: Similar to gold, silver's decline is primarily driven by the stronger US dollar and Treasury yields. The metal's price movements are often influenced by macroeconomic factors.
• Fed's Influence: Market reactions to comments by Minneapolis Fed President Neel Kashkari about the need for further work to control inflation have also impacted silver prices.
• Jobs Report Optimism: The initial optimism from weak US jobs figures, which suggested a potential end to the Fed's tightening cycle, briefly supported silver prices.
• Investor Anticipation: There's increased anticipation among investors for more insights from Federal Reserve officials, including Chair Jerome Powell.
• Mixed Global Cues: The decline in precious metals is also fueled by reduced Middle East tensions and mixed economic data from China, which reported growth in imports but a significant contraction in exports.

Coming Up Next Week 📅

• US Consumer Price Index (CPI): This indicator measures changes in the price level of a basket of consumer goods and services. A higher CPI could signal rising inflation, which might lead to further rate hikes and influence precious metal prices.
• UK Gross Domestic Product (GDP): GDP is a measure of the total value of all goods and services produced by a country. The UK's GDP data provides insights into the economic health of the region and can impact market sentiment.
• European Central Bank (ECB) Minutes: The release of the ECB's minutes will give traders a deeper understanding of the bank's stance on monetary policy. Any hints about future rate hikes or economic outlooks could sway the precious metals market.
• US Retail Sales: This indicator shows the total receipts of retail stores. Changes in retail sales reflect consumer spending trends, a key driver of economic activity.
• Japanese Industrial Production: As an indicator of the strength of the industrial sector in Japan, this data can influence global market sentiment and impact commodity prices, including precious metals.

That's it for today. Have a great weekend.