Hycroft Mining Holding Corp (NASDAQ:HYMC) shares are dipping on Tuesday as Lunar New Year market closures take effect across Asia on top of investor caution ahead of Wednesday's Federal Reserve meeting minutes. Here’s what you may want to know today.
Metals Under Pressure
Bloomberg reports that gold dipped below $4,900 an ounce on Tuesday as much of Asia — the world's largest gold‑buying region — remained closed for the Lunar New Year holiday. Spot gold fell as much as 3%, touching its lowest intraday level in more than a week and extending Monday's decline. Silver saw an even steeper drop, sliding 5.4% at one point before trimming some losses.
The drop comes after a particularly volatile stretch for precious metals. Gold recently spiked above $5,595 an ounce before plunging back toward $4,400 in just two days at the end of January.
Fed Minutes In Focus
Traders are also staying cautious ahead of Wednesday's release of the Fed's January meeting minutes. According to Reuters, investors are hoping the minutes will offer more clarity on how policymakers are thinking as the central bank approaches a leadership transition.
President Donald Trump has nominated former Fed Governor Kevin Warsh to take over when Chair Jerome Powell's term ends in May. Markets don't expect a rate move until the June 16–17 meeting, which Warsh would lead if confirmed in time.
Fed officials, including Powell, have said they expect inflation to drift back toward 2% by mid‑year, but many, including Chicago Fed President Austan Goolsbee, want to see a clear trend in the data before acting. The Fed's preferred inflation gauge, the PCE index, has been stuck around 2.8% since May. December PCE data arrives Friday, and officials have signaled they don't expect much improvement.
Hycroft’s Technical Data
Hycroft Mining is currently showing a bearish setup, as it is trading below key moving averages. This indicates a potential weakness in the stock’s momentum. Traders should be cautious about entering new positions at this time.
The RSI is currently neutral, which means there's no immediate overbought or oversold condition to signal a strong directional move, suggesting traders should watch for any shifts in sentiment that could push the RSI into either extreme.
MACD is below its signal line, indicating bearish pressure on Hycroft Mining. This suggests that the current trend may be weakening, and traders should be alert for any signs of a potential reversal or continuation of the downtrend.
Key support is set at $31.00, and if this level is tested, it could provide a crucial point for traders to watch for a bounce or a breakdown. Conversely, without a defined resistance level, any upward movement may face challenges until a new high is established.
Hycroft Mining Holding has experienced an impressive 12-month performance of 1,095.34%, reflecting a strong longer-term trend. This substantial gain indicates that despite the current bearish setup, the stock has shown resilience and potential for recovery if momentum shifts positively.
HYMC Price Action: Hycroft Mining shares were down 7.26% at $32.97 at the time of publication on Tuesday, according to Benzinga Pro.
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