Gold and silver prices are marginally higher in early U.S. trade on Tuesday, as bulls try to steady their unstable markets. Rising bond yields and a strong US dollar have recently battered safe-haven metals. The bulls are hindered by the fact that their metals are disregarding a sickly US stock market and increased risk aversion in the marketplace as a result of a big war and growing inflation. June gold futures were down $0.40 to $1,858.00 an ounce, while July Comex silver was down $0.015 to $21.805 an ounce.
Overnight, global stock markets were mixed. On corrective rebounds from recent severe selling pressure, U.S. market indices are pointing to higher openings when the New York day session begins. Overnight, the S&P 500 and Nasdaq futures markets hit 12-month lows. The bears in the US stock index have a strong technical advantage in the short term, as prices are in downtrends on daily bar charts.
The Russia-Ukraine conflict, escalating Covid cases that have shut down large Chinese cities, and high price inflation are all unfavorable factors that will likely limit any durable stock market recovery.
Nymex crude oil futures are trading at $101.75 a barrel on the key outer markets today. In the meantime, the dollar index is up in early trading. The 10-year US Treasury note now has a yield of 3.028 percent.
The weekly Johnson Redbook and chain store retail sales indices, the NFIB small business index, and the IDB/TIPP economic optimism index are all expected out on Tuesday. Today, a number of Federal Reserve officials talk. Today, President Biden will also speak about the economy.