Gold prices are trading significantly higher, while silver also shows modest gains in midday U.S. trading on Wednesday. The rise in precious metals is being driven by favorable “outside-market” factors: a weaker U.S. dollar index, a sharp drop in U.S. stock index values, and increased crude oil prices. Additionally, stabilized U.S. Treasury yields this week are providing further support for gold and silver.
As of the latest update, August gold has risen by $14.80 to $2,422.00 per ounce, while September silver is up $0.064 to $29.39 per ounce.
U.S. stock indexes are experiencing significant declines, reaching five-week lows. Negative earnings reports from major companies like Tesla and Alphabet are dampening investor sentiment. This downturn in the stock market, which is seen as a competing asset class to precious metals, is considered bullish for gold and silver.
Traders and investors are anticipating key U.S. economic data later this week, including the GDP report on Thursday and the personal income and outlays report, which will include inflation indicators, on Friday morning.
In the outside markets, the U.S. dollar index is down, while Nymex crude oil prices are higher, trading around $78.00 per barrel. The benchmark 10-year U.S. Treasury note yield stands at 4.233%.
