Gold solidly down on profit-taking ahead of Jackson Hole
Gold and silver prices are lower, with gold posting sharp losses, on profit taking by the shorter-term futures traders and position-squaring just ahead of one of the most important gatherings of central bank officials this year. A rally in the U.S. dollar index and rising U.S. Treasury yields today are also unfriendly outside-market forces for the two precious metals. December gold was last down $28.80 at $2,518.90. September silver was down $0.365 at $29.17.
The marketplace awaits the annual Jackson Hole, Wyoming Federal Reserve symposium of world central bankers that begins later today. Past years have seen central bank officials make markets-moving pronouncements at the confab. Fed Chairman Powell is slated to speak at the symposium on Friday morning and may give some guidance on the size of an expected U.S. interest rate cut in September.
U.S. stock indexes are slightly lower at midday. Trader/investor attitudes have been more upbeat the past few sessions, as seen by the S&P 500 and Nasdaq stock indexes hitting four-week highs this week.
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are up and are trading around $73.45 a barrel. The benchmark 10-year U.S. Treasury note is presently fetching 3.875%.
Technically, December gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $2,600.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,450.00. First resistance is seen at $2,550.00 and then at the contract high of $2,570.40. First support is today’s low of $2,506.40 and then at $2,500.00. Wyckoff's Market Rating: 8.0.
September silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at this week’s high of $30.035 and then at $30.50. Next support is seen at this week’s low of $28.78 and then at $28.50. Wyckoff's Market Rating: 6.0.
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Jim Wyckoff
Tim Moseley