Gold drifting lower today. Down $40 in three days

Gold is trading off again today and at 11:34 am Eastern it is trading at $1256.74 spot. That is down almost $40 from its level three days ago. Traders are taking a breather from the yellow metal as a safe haven and are waiting for more clarity on the direction of the Fed, the economy, and the wars that are raging in Ukraine and Gaza. From a short term technical perspective, it's more probable that gold continues to drift lower absent any shocks to the markets.

Silver is holding up better than gold and is actually up today by 18 cents at $22.81. Silver historically always moves in the same direction and with greater percentage changes than gold, so today is an anomaly.

The dollar index (DXY) is flat today at 105.500

According to some traders, gold will take its cues from Fed officials comments as well as economic data releases. There are multiple Fed speeches today (Cook, Powell, Williams, Barr, and Jefferson), with the big one being Powell, the Chairman of the Federal Reserve. Fed speeches often give clues to future direction of interest rates.

On the economic front there is little other than mortgage applications levels, and wholesale inventories today. Tomorrow is a bigger day with another Powell speech, along with Bostic and Barkin. On the economic front, we get initial jobless and continuing jobless claims which might give further insights into the strength of the labor markets.

Platinum and Palladium, which are much more sensitive to industrial production levels continue to weaken.

Dan Barrett is the Chairman of Pacific Precious Metals and the Founder of the Aureus Point-of-Sale system, a software platform made for bullion and coin dealers. He has been investing in physical gold and silver for over 15 years. His prior experience includes being an Analyst for a variety of Banks and Hedge Funds.

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