The overnight session was painfully quiet. Volume on the electronic exchange was dismal with participants on the sidelines due to the Chinese holiday and anxiety over FOMC Chair Yellen’s congressional testimony on the US economy today. The precious metals slid quietly lower overnight in the absence of physical demand. The easing of Greek debt funding concerns also did not do any favors for the precious metals complex.
On to the US session, Yellen’s commentary provided some initial choppy trading conditions but the markets have since calmed. Of note, Yellen remarked that guidance will be changed before rates are hiked and that rates won’t rise until there are another couple of meetings. She also talked about how the Fed views the dramatic oil price sell off as a more durable source of stronger growth and a temporary factor countering inflation concerns.
The testimony ultimately provided some bids for gold as it shot up to the session highs before settling back down into its intraday range. Initial support is coming in at the double bottom of $1,190 and then more significant support waits below at $1,170. Silver has traded lower in six of the past seven trading sessions and looks poised to break lower with further pressure of the $16 handle. There is a quadruple bottom at $15.55 if stops are triggered at $16 in silver.