Precious Metals Slide Further as Juneteenth Closes U.S. Markets
Gold and silver extended losses Friday with U.S. markets closed for the Juneteenth holiday. The Federal Reserve's hawkish hold and a strengthening dollar continue to pressure precious metals.
Gold and silver prices continued their downward trajectory Friday morning, weighed down by the Federal Reserve's hawkish rate posture, a strengthening dollar, and the ongoing uncertainties in Lebanon despite the US-Iran recent deal.
With U.S. financial markets shuttered for the Juneteenth holiday, spot gold traded around ~$4,150 at the time of this writing, while silver trades lower than ~$65.
The Fed's rate position continues to be the clearest drag on precious metals. The U.S. dollar index pushed to its highest point since June of last year, and the 10-year Treasury yield hovered around 4.5% before the holiday pause.
Meanwhile, crude oil trades at roughly ~$77.33 a barrel while Brent trades near ~$81. Oil remains well beneath the peaks seen during the U.S. and Iran escalation, though trading has turned more two-sided as participants evaluate how rapidly Hormuz shipping traffic can return to normal.
Traders now turn their attention to next week's tense economic calendar, which features S&P Global flash PMI on Tuesday, new home sales and final Q1 GDP on Wednesday, and durable goods and PCE inflation on Thursday.
Can the gold bulls recapture the $4,300 and make it stay above that price point? Only time will tell, but fundamentals don't look very good for the precious metals at the moment.