Gold and silver faced regular profit-taking selling pressure
2025-09-24 22:53:21
Gold and silver prices weakened in early U.S. trading on Wednesday, September 24th. Following record highs for gold and 14-year highs for silver this week, the market is experiencing typical profit-taking. December gold futures were last trading at $3,798.20 (approximately $30 below the spot gold price), down $17.50; December silver futures were trading at $44.275, down $0.333.
Global stock markets showed mixed trends overnight, with U.S. stock indexes expected to open slightly higher in New York after hitting record highs on Monday.
In overnight news, Federal Reserve Chairman Jerome Powell, in a speech on Tuesday, stated that the outlook for the U.S. labor market and inflation faces risks, calling the current situation "challenging." Powell noted that "in the short term, risks to inflation are tilted to the upside, and risks to employment are tilted to the downside—this is a challenging situation," and that "two-way risks mean there is no risk-free path." He denied that the Fed's policy decisions are politically biased, stating, "We are always considering how to achieve the greatest benefit for the people we serve." Powell gave no indication as to whether the Fed's next Federal Open Market Committee (FOMC) meeting in October would support a rate cut.
According to Bloomberg, Argentina is seeking financial assistance in the form of accelerated funding from international lenders, including the World Bank and the Inter-American Development Bank. This week, the United States publicly pledged assistance to Argentina, with Treasury Secretary Bessent stating that the US would take all necessary measures to assist Argentina. Bloomberg stated that this pledge of support could help stabilize the recently depreciating Argentine peso, "but it's unclear whether it will be sufficient to calm markets or support President Javier Milei's economic reforms." Furthermore, the aid from international lenders "falls far short of the more forceful support the US has previously signaled to reverse the peso's sharp depreciation." On Tuesday, the World Bank and the Inter-American Development Bank announced they would release previously pledged funds to Argentina or expedite their disbursement so that President Milei could put them to use more quickly. That same day, while sitting alongside Milei outside the United Nations General Assembly in New York, President Trump also expressed his willingness to help, but added that he did not believe the Argentine government needed a bailout. However, neither Trump nor Bessant detailed whether more aid would be forthcoming, leaving open the question of whether the World Bank and IDB's moves would be enough to reassure markets. The Argentine peso, which fell sharply last week on concerns that Milley's economic recovery plan was losing momentum, rebounded nearly 4% on Tuesday.
Key external market developments today showed: the U.S. dollar index rose sharply; crude oil prices rose, trading around $64.00 per barrel; the benchmark 10-year U.S. Treasury yield is currently 4.10%.
U.S. economic data due for release today includes the weekly MBA mortgage applications survey, new home sales data, and the weekly U.S. Energy Information Administration (DOE) liquid energy stocks report.
(Comex Gold Daily Chart Source: Yihuitong)
From a technical perspective, December gold futures bulls have a clear overall near-term technical advantage. Bulls' next upside price objective is pushing futures prices above the key resistance level of $3,900.00. Bears' next near-term downside price objective is pushing futures prices below key technical support at $3,650.00. First resistance is seen at this week's high of $3,824.60, with further resistance at $3,850.00. First support is seen at Tuesday's low of $3,772.40, with further support at this week's low of $3,718.10.
December silver futures bulls also have a clear advantage in the overall near-term technical picture. Silver bulls' next upside price objective is closing prices above key technical resistance at $45.00. Bears' next downside price objective is closing prices below key support at $41.00. First resistance is seen at this week's high of $44.77, with further resistance at $45.00. First support is seen at $43.97, with further support at this week's low of $43.37.
Global stock markets showed mixed trends overnight, with U.S. stock indexes expected to open slightly higher in New York after hitting record highs on Monday.
In overnight news, Federal Reserve Chairman Jerome Powell, in a speech on Tuesday, stated that the outlook for the U.S. labor market and inflation faces risks, calling the current situation "challenging." Powell noted that "in the short term, risks to inflation are tilted to the upside, and risks to employment are tilted to the downside—this is a challenging situation," and that "two-way risks mean there is no risk-free path." He denied that the Fed's policy decisions are politically biased, stating, "We are always considering how to achieve the greatest benefit for the people we serve." Powell gave no indication as to whether the Fed's next Federal Open Market Committee (FOMC) meeting in October would support a rate cut.
According to Bloomberg, Argentina is seeking financial assistance in the form of accelerated funding from international lenders, including the World Bank and the Inter-American Development Bank. This week, the United States publicly pledged assistance to Argentina, with Treasury Secretary Bessent stating that the US would take all necessary measures to assist Argentina. Bloomberg stated that this pledge of support could help stabilize the recently depreciating Argentine peso, "but it's unclear whether it will be sufficient to calm markets or support President Javier Milei's economic reforms." Furthermore, the aid from international lenders "falls far short of the more forceful support the US has previously signaled to reverse the peso's sharp depreciation." On Tuesday, the World Bank and the Inter-American Development Bank announced they would release previously pledged funds to Argentina or expedite their disbursement so that President Milei could put them to use more quickly. That same day, while sitting alongside Milei outside the United Nations General Assembly in New York, President Trump also expressed his willingness to help, but added that he did not believe the Argentine government needed a bailout. However, neither Trump nor Bessant detailed whether more aid would be forthcoming, leaving open the question of whether the World Bank and IDB's moves would be enough to reassure markets. The Argentine peso, which fell sharply last week on concerns that Milley's economic recovery plan was losing momentum, rebounded nearly 4% on Tuesday.
Key external market developments today showed: the U.S. dollar index rose sharply; crude oil prices rose, trading around $64.00 per barrel; the benchmark 10-year U.S. Treasury yield is currently 4.10%.
U.S. economic data due for release today includes the weekly MBA mortgage applications survey, new home sales data, and the weekly U.S. Energy Information Administration (DOE) liquid energy stocks report.
(Comex Gold Daily Chart Source: Yihuitong)
From a technical perspective, December gold futures bulls have a clear overall near-term technical advantage. Bulls' next upside price objective is pushing futures prices above the key resistance level of $3,900.00. Bears' next near-term downside price objective is pushing futures prices below key technical support at $3,650.00. First resistance is seen at this week's high of $3,824.60, with further resistance at $3,850.00. First support is seen at Tuesday's low of $3,772.40, with further support at this week's low of $3,718.10.
December silver futures bulls also have a clear advantage in the overall near-term technical picture. Silver bulls' next upside price objective is closing prices above key technical resistance at $45.00. Bears' next downside price objective is closing prices below key support at $41.00. First resistance is seen at this week's high of $44.77, with further resistance at $45.00. First support is seen at $43.97, with further support at this week's low of $43.37.
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