Warsh Confirmation Boosts Dollar; Yields Pressure Gold, Silver

Kevin Warsh's confirmation as the next Federal Reserve chair on May 19 pushed the U.S. dollar higher and drove long-term Treasury yields sharply upward, reversing recent gains in gold and silver.

Markets adjusted to expectations of tighter monetary policy, sending bond prices lower and raising 10-year and longer yields. The rise in yields increased demand for interest-bearing Treasuries relative to non-yielding precious metals, prompting traders to rotate into higher-yielding instruments and erasing recent two-month highs in gold and silver.

On four-hour charts, gold rejected overhead resistance and tested support around $4,500. Market analyst Elior Manier pointed to a descending relative strength index and weakening candles that raise the odds of a break below near-term support, while a move above about $4,600 on momentum would counter the bearish case. Intraday resistance sits in the $4,650–$4,700 area, with major resistance near $4,850–$4,900 and higher barriers around $5,100 and $5,400. Immediate support is $4,500–$4,550, with stronger floors at $4,325–$4,400 and channel lows near $4,100; a wider downside range extends toward $3,880–$4,000.

Silver returned to a longer $70–$84 range after last week's rally was erased. Buyers have been stepping in around $74, but technical indicators show weak buying and a falling RSI. Near-term resistance is near $79–$80, followed by heavier resistance between $83 and $84.50 and further bands in the $90s. Support levels include $74–$76 and $70–$71.50, with additional floors around $64–$66 and lower historical levels near the $50s.

Rising yields increase the opportunity cost of holding non-yielding assets, and a stronger dollar raises the local-currency price of dollar-denominated commodities. Manier observed that ongoing geopolitical tensions in the Middle East may periodically support demand for gold, and that industrial-linked metals such as silver and copper may face headwinds if financial conditions remain tight and the dollar stays firm.