Gold, silver weaker as USDX continues its rebound
Gold and silver prices are moderately lower in midday U.S. trading Monday, pressured by the U.S. dollar index continuing its recovery after hitting a 15-month low last week. Focus of the marketplace is on a key central bank decision at mid-week. August gold was last down $4.50 at $1,962.00 and September silver was down $0.245 at $24.61.
The U.S. data point of the week is the Federal Reserve's Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement. Most market watchers believe the Fed will raise the main U.S. rate, the Fed funds rate, by 0.25%. As usual, the marketplace will closely scrutinize the FOMC statement and Fed Chair Powell's remarks at his press conference for clues on the trajectory of Fed monetary policy in the coming months.
A Barron's news headline today reads: “Tech earnings, Fed rate call, inflation data—expect crucial answers this week."
Asian and European stock markets were mixed in quieter overnight trading. U.S. stock indexes are mixed at midday. The U.S. stock indexes are hovering near their highs for the year.
Kitco daily macro-economic/business digest – July 24
The key outside markets today see the U.S. dollar index firmer. Meantime, Nymex crude oil prices are higher and trading around $79.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.837%.
Technically, August gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Prices are in a three-week-old uptrend on the daily bar chart, but just barely. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,900.60. First resistance is seen at today's high of $1,969.80 and then at Friday's high of $1,975.90. First support is seen at last week's low of $1,958.10 and then at $1,950.00. Wyckoff's Market Rating: 5.5.
September silver futures bulls have the overall near-term technical advantage. A four-week-old price uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today's high of $24.89 and then at $25.00. Next support is seen at today's low of $24.425 and then at $24.00. Wyckoff's Market Rating: 6.0.
September N.Y. copper closed up 310 points at 384.90 cents today. Prices closed near the session high today. The copper bulls and bears are on a level overall near-term technical playing field amid choppy trading. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 368.30 cents. First resistance is seen at 388.85 cents and then at 396.40 cents. First support is seen at last week's low of 378.10 cents and then at 374.25 cents. Wyckoff's Market Rating: 5.0.
By
Jim Wyckoff
For Kitco News
Tim Moseley