Gold, silver down amid weak China economic news, bearish outside markets

Gold and silver prices are solidly lower in midday U.S. trading Monday, on demand concerns for the metals after a batch of weak economic data from China. Sharply lower crude oil prices and a stronger U.S. dollar index to start the trading week are also bearish daily forces working against the metals. October gold futures were last down $19.60 at $1,785.70. September Comex silver futures were last down $0.443 at $20.26 an ounce.

China's central bank this week unexpectedly announced it is lowering interest rates and adding liquidity to China's financial system after some dour economic data reported for the world's second-largest economy. Chinese data on factory output, investment, consumer spending and real estate all weakened in July. The dour China news added to fears of a global economic recession. Covid restrictions and a troubled property market have helped to hobble China's economy in recent months. Other raw commodity prices on Monday also took a hit on the China news, led by a big drop in crude oil prices. China is a major global consumer of raw commodities, including metals. A weakening Chinese economy suggests less demand for raw commodities.

Global stock markets were mixed overnight. U.S. stock indexes are a bit higher at midday.

Ghana's central bank to buy domestic gold in September to strengthen nation's foreign reserves

The key outside markets today see Nymex crude oil prices sharply lower and trading around $88.50 a barrel. The U.S. dollar index is solidly higher in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.781%.

Technically, October gold futures bears have the overall near-term technical advantage. A fledgling price uptrend is now just barely in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at the August high of $1,814.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,725.00. First resistance is seen at $1,800.00 and then at today's high of 1,808.20. First support is seen at today's low of $1,777.60 and then at $1,760.00. Wyckoff's Market Rating: 3.5.

September silver futures bears have the overall near-term technical advantage. A fledgling uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $20.50 and then at today's high of $20.87. Next support is seen at $20.00 and then at $19.47. Wyckoff's Market Rating: 3.5.

September N.Y. copper closed down 525 points at 361.60 cents today. Prices closed near mid-range. The key "outside markets" were bearish for copper today as crude oil prices were sharply down and the U.S. dollar index was higher. The copper bulls and bears are on a level overall near-term technical playing field. Prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at last week's high of 371.30 cents and then at 380.00 cents. First support is seen at today's low of 354.60 cents and then at 350.00 cents. Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Stronger dollar set for weekly loss as traders adjust rate hike bets

The dollar rallied on Friday but was set for a weekly drop as traders weighed improving U.S. inflation data against comments from Federal Reserve officials who cautioned the battle against rising prices is far from over.

U.S. import prices declined for the first time in seven months in July on lower costs for both fuel and non-fuel products, data showed on Friday, in the third report this week to hint inflation may have peaked. read more

Another two key inflation measures, for consumer prices and producer prices, cooled in July, data on Wednesday and Thursday showed, prompting traders to pare back views that the Fed will raise interest rates by 75 basis points for a third consecutive time when it meets in September. read more

The dollar dropped more than 1% after Wednesday's consumer price index data, but has reversed some of those losses and is on track for a 0.8% decline for the week.

"While the improvement in inflation dealt the dollar a setback this week, conviction in a less aggressive Fed remains highly fluid, so conseq

uently, it's been tough to keep the dollar down for meaningful stretches," said Joe Manimbo, senior market analyst at Convera.

At 10:35 a.m. Eastern time (1435 GMT), the dollar index was up 0.533% at 105.68 .

The greenback's turnaround followed a steady drumbeat from Fed officials who made clear they would continue to tighten. San Francisco Federal Reserve Bank President Mary Daly said on Thursday she was open to the possibility of another 75 basis point hike in September. read more

"The Fed is going to be inclined to push back against the notion of a premature policy pivot," said Manimbo. "That would threaten to unravel all of the hard work they've done to bring down inflation."

Traders were pricing in around a 36.5% chance of a 75 bps Fed rate hike in September and a 63.5% chance of 50 bps.

The dollar was up 0.4% against Japan's currency, with the greenback at 133.51 yen .

Kit Juckes, head of FX strategy at Societe Generale, said dollar trading was likely to remain "choppy".

"It's not going to be going significantly weaker in a straight line because there’s still a danger than the market has to reprice terminal Fed funds higher, given there’s still plenty of inflation," Juckes said.

The British pound fell 0.745 to $1.2124 versus the dollar. Data showed UK GDP contracted by less than forecast in June, even though an extra public holiday had been expected to cause a big drag. read more

The euro was down 0.54% at $1.0262 . French inflation was up 6.8% year-on-year in July, while for Spain it was 10.8%, the highest since 1984, data showed.

The euro has been weighed down by Europe's struggles with the war in Ukraine, the hunt for non-Russian energy sources and a hit to the German economy from scant rainfall. read more

Commerzbank said in a note it had revised its euro-dollar forecast lower, as it expects a euro-area recession as a base scenario, having previously been a "risk scenario".

The bank said it expects the euro to fall to $0.98 in December and to not recover until later in 2023.

The New Zealand dollar was lifted by expectations of a Reserve Bank of New Zealand rate rise next week.

Reporting by John McCrank in New York; additional reporting by Elizabeth Howcroft in London; Editing by Mark Potter, David Holmes and Alexander Smith

Time to buy Gold and Silver on the dips

Tim Moseley

Gold will play a big role in the coming global 'monetary reset' as U.S dollar loses its dominance – Maxime BernierCornelius Christian Cornelius Christian

A global monetary reset is inevitable, as fiat currencies are being debased due to excessive money printing.The U.S. dollar will be dethroned as the dominant global reserve currency by currencies backed by a basket of commodities including gold, according to Maxime Bernier, Founder and Leader of The People's Party of Canada.

"A commodity-backed money system will happen," he stated. "I don't know when, but a fiat money system cannot live too long. And after many decades, with all this debt and money printing across America and Canada and Europe, it will have to end."

"We need to tell central bankers to have an inflation target of zero," he said. "After that, I believe we need to have a monetary reset internationally, having money that will be based on gold or other commodities, like we had in the 19th Century," said Bernier.

Bernier, a former minister from 2006 to 2015 under Prime Minister Stephen Harper, said that excess money printing and rising federal debt burdens had led to high inflation in Canada. Canada's inflation rate stands at 8.1 percent in June.

"We have inflation because of bad monetary policy," he explained. "We need to balance the budget. We need to stop spending money we don't have."

Bernier served as Minister of State (Small Business, Tourism, and Agriculture), Minister of Foreign Affairs, and Minister of Industry under PM Harper. In 2018, after losing the Conservative Party of Canada's leadership race, he left to start the People's Party.

Bernier spoke with Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News.

Inflation and Monetary Policy

Inflation is a tax, said Bernier, which transfers resources from the working population to the government.

"Now we have inflation in Canada at 8.1 percent, and inflation is a tax," he said. "The average income increase in Canada for this year will be around 5 percent. So every Canadian will be poorer by 3 percent. So we have a new 3 percent tax."

He was critical of Prime Minister Justin Trudeau's spending during COVID-19 lockdowns, saying that "The Bank of Canada was the ATM machine for the federal government," and that now Canadians are paying for this through higher prices.

Since 2010, Bernier has argued in favor of commodity-backed currency systems like the classical gold standard, which the U.S. and Canada adopted in the 19th Century.

"You can see a trend toward de-dollarization right now, with Russia and China and India," he said, referring to BRICS countries' plans to launch a new global reserve currency. "They're looking to have a new currency based on commodities, and maybe on gold… I'm more of a traditional guy, believing in a kind of gold standard that we had in the 19th Century."

The U.S. economy could 'collapse' following a debt crisis; Bitcoin and crypto may help rebuild afterwards – Max Borders

CBDCs

In March, Bernier tweeted his opposition to central bank digital currencies (CBDCs), fiat digital tokens issued and controlled by central banks, which would serve as a form of money.

"There's no way we can trust central bank digital currencies after the seizure of truckers' accounts and Russia's reserves," Tweeted Maxime, referring to the Canadian government's seizure of bank accounts during the anti-mandate Freedom Convoy protests, and Canada's confiscation of Russian assets due to the Ukraine conflict. "[CBDCs] will be used by governments to crack down on dissidents and implement a social credit system as in China."

Canada is currently developing a CBDC, and the United States is researching the concept.

"A central bank digital currency will be a way for the government to control everything that you're doing," Bernier told Makori. "It would be another way to control all our spending and bank accounts. It's another way to be in a totalitarian country. We don't want that and we don't need it."

Bernier pointed to the fact that debit cards and e-transfers already accomplish many of the purported goals of CBDCs.

He emphasized that a "quiet, peaceful revolution" would be needed to thwart the imposition of CBDCs.

"If they are imposing a central bank digital currency, I believe the people will wake up, and I hope they won't be able to do it," he said. "We must inform the population about that, and as a political party, [The People's Party of Canada] that's what we are doing."

To find out Bernier's thoughts on investing in gold and Bitcoin, watch the above video.

By Cornelius Christian

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Traders buy the dip all week reinforcing support for gold futures at $1800

On Monday, August 8 gold futures opened at $1790 and by the close of trading had broken and closed above its 50-day moving average and closed at $1805 per ounce. Throughout the remainder of the week, December gold futures closed above $1800 on a daily chart. That being said, on Tuesday, Thursday and today December gold briefly traded to an intraday low between $1798 and $1799 prompting traders to buy the dip and move gold back

The chart above is a 480-minute candlestick chart of gold futures which shows that in six instances market participants witnessed gold briefly break below $1800 and on each occasion recovered and closed above that key psychological price point. Both the daily and intraday charts demonstrate traders' resolve to buy gold futures on each occasion that they perceived gold had become oversold below $1800.

December gold closed the week near its weekly high of $1824.70 resulting in the fourth consecutive week of gains. Over the last four weeks, gold has traded from a low of $1680 which occurred during the week of July 18, and gained approximately $137 or 7.53% in just four weeks of trading.

As of 5;05 PM, EDT gold futures are fixed at $1818.90 resulting from a net gain of $11.70 or 0.65%. Spot gold also finished solidly higher on the week taking physical gold just above $1800 per ounce for the first time since the beginning of July. Today’s respectable gains occurred despite dollar strength. The dollar gained 0.54% in trading today taking the dollar index to 105.565.

The screen-print above of the KGX (Kitco Gold Index) was taken at 4:29 PM EDT and fixed spot gold at $1801.40 per ounce. This is the first-time spot gold has closed above $1800 per ounce since the week of June 27. Today spot gold closed up by $11.40. However, the real gain minus dollar strength was $21.20 because dollar strength took away $9.80.

There remains genuine concern that the Federal Reserve has interest raised rates over the last four consecutive FOMC meetings. Also, the most recent data revealed a decline in the Consumer Price Index from 9.1% in June to 8.5% in July. In light of a hawkish Fed and a slight decline in inflation the fact that gold futures gained over 7% in four weeks clearly illustrates that market participants continue to be laser-focused on inflation rather than rising rates.

By Gary Wagner

Contributing to kitco.com

Time to buy Gold and Silver on the dips

Tim Moseley

Gold, silver lower amid better risk appetite, rising bond yields

Gold and silver prices are moderately down in midday U.S. trading Thursday, on some pressure from an uptick in trader and investors risk appetite late this week following some U.S. inflation data that was a bit tamer than expected. Rising U.S. Treasury bond yields today are also a negative for the metals. October gold futures were last down $9.10 at $1,794.10. September Comex silver futures were last down $0.437 at $20.30 an ounce.

Today’s U.S. producer price index report for July came in down 0.5%, compared to forecasts of up 0.2% from June and compares to the June PPI report’s rise of 1.1% from May. Year-on-year the July PPI was up 9.8%, which is still hot. On Wednesday the U.S. consumer price index report for July that came in unchanged from June and up 8.5% year-on-year. This week’s U.S. inflation data is prompting some early speculation in the marketplace that inflationary pressures may have peaked and will trend down in the coming months. That has likely somewhat boosted U.S. consumer confidence and boosted the U.S. stock market. Global stock markets were mostly flat overnight. U.S. stock indexes are firmer at midday.

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The key outside markets today see Nymex crude oil prices solidly up and trading around $94.50 a barrel. The U.S. dollar index is weaker in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching around 2.8%.

Technically, October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,804.30 and then at this week’s high of 1,814.40. First support is seen at today’s low of $1,788.50 and then at this week’s low of $1,776.20. Wyckoff's Market Rating: 4.0.

September silver futures bears have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.83 and then at $21.00. Next support is seen at today’s low of $20.19 and then at $20.00. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 515 points at 370.10 cents today. Prices closed near the session high and hit a five-week high today. The copper bulls and bears are on a level overall near-term technical playing field. Prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at 375.00 cents and then at 380.00 cents. First support is seen at 360.00 cents and then at this week’s low of 353.15 cents. Wyckoff's Market Rating: 5.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Gold, silver gain a bit amid slightly tamer U.S. inflation data

Gold and silver prices are modestly up in midday U.S. trading Wednesday, in the wake of a U.S. inflation report that came in not as hot as the marketplace expected. Gold prices hit a four-week high and silver prices a five-week high today. October gold futures were last up $3.70 at $1,805.10. September Comex silver futures were last up $0.273 at $20.755 an ounce.

The U.S. consumer price index report for July came in at unchanged from June and up 8.5%, year-on-year. The report was expected to be up 8.7%, year-on-year, after a rise of 9.1% in the June report. Gold prices initially rallied to a four-week high on the news, as the U.S. dollar index dropped sharply and U.S. Treasury yields declined. However, bond yields then ticked back up. Meantime, the U.S. stock indexes rallied amid “risk-on” trading attitudes that also worked to push the safe-haven metals down from their higher levels. After having a bit of time to think about today’s CPI data, traders and investors reckoned that while the data was a bit tamer, it still suggests problematic price inflation that will probably keep the Federal Reserve on its aggressive path of tightening U.S. monetary policy. Thursday comes the producer price index report for July, seen up 0.2% from June and compares to the June report’s rise of 1.1% from May.

For July, seen up 0.2% from June and compares to the June report’s rise of 1.1% from May.

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Global stock markets were mostly down overnight. In overnight news, China said it has stopped its military exercise around Taiwan, but now says it’s preparing for war. On the economic front, China said its consumer price inflation in July was up 2.7%, year-on-year, which is the highest rate in two years.

The key outside markets today see Nymex crude oil prices up and trading around $91.25 a barrel. The U.S. dollar index sharply lower and hit a four-week low today. The yield on the 10-year U.S. Treasury note is fetching around 2.7%.

Technically, October gold futures prices hit another four-week high today. The gold futures bears still have the slight overall near-term technical advantage. However, a fledgling price uptrend is in place on the daily bar chart to suggest more upside in the near term. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,814.40 and then at 1,825.00. First support is seen at today’s low of $1,793.00 and then at Tuesday’s low of $1,788.50. Wyckoff's Market Rating: 4.5.

September silver futures prices hit a five-week high today and scored a bullish “outside day” up on the daily bar chart. The bears have the slight overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today’s high of $20.83 and then at $21.00. Next support is seen at today’s low of $20.315 and then at $20.00. Wyckoff's Market Rating: 4.5.

September N.Y. copper closed up 665 points at 365.20 cents today. Prices closed near the session high, hit a five-week high and scored a bullish outside day up today. The copper bears have the slight overall near-term technical advantage. However, prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. First resistance is seen at 370.00 cents and then at 375.00 cents. First support is seen at this week’s low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 4.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Gold pops to 4-week high on friendlier charts, weaker USDX

Gold prices are moderately up and hit a four-week high in midday U.S. trading Tuesday. The yellow metal was boosted by technical buying, a weaker U.S. dollar index and even by some light safe-haven demand. October gold futures were last up $9.20 at $1,803.60. September Comex silver futures were last down $0.119 at $20.495 an ounce.

Traders are awaiting two key U.S. inflation reports that are on deck. Wednesday comes the consumer price index report for July, which is seen coming in up 8.7%, year-on-year, after a rise of 9.1% in the June report. Thursday comes the producer price index report for July, seen up 0.2% from June and compares to the June report’s rise of 1.1% from May.

Global stock markets were steady to mixed overnight. U.S. stock indexes are weaker at midday. Corporate earnings reports are in focus for stock traders this week. China-Taiwan tensions remain high as China is conducting military exercises near Taiwan, with Taiwan saying it will conduct its own military maneuvers. This geopolitical matter is likely prompting some safe-haven demand for gold, especially from Asians.

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The key outside markets today see Nymex crude oil prices weaker and trading around $90.25 a barrel. The U.S. dollar index is modestly lower in midday U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.783%.

Technically, October gold futures prices hit a four-week high today. The gold futures bears still have the slight overall near-term technical advantage. However, a fledgling price uptrend is in place on the daily bar chart to suggest more upside in the near term. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,806.00 and then at 1,825.00. First support is seen at today’s low of $1,788.50 and then at this week’s low of $1,776.20. Wyckoff's Market Rating: 4.5.

September silver futures bears have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.745 and then at $21.00. Next support is seen at $20.25 and then at $20.00. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 65 points at 359.30 cents today. Prices closed near mid-range and hit another five-week high today. The copper bears have the overall near-term technical advantage. However, prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at today’s high of 363.05 cents and then at 370.00 cents. First support is seen at this week’s low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 4.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Gold, silver boosted by falling USDX, U.S. bond yields, rising oil

Gold and silver prices are higher, with silver sharply up and hitting a five-week high in midday U.S. trading Monday. The precious metals were boosted today by a weaker U.S. dollar index and falling U.S. Treasury bond yields, as well as a rally in the crude oil market today. Some modest safe-haven demand was also featured in gold and silver. October gold futures were last up $12.70 at $1,793.00. September Comex silver futures were last up $0.808 at $20.645 an ounce.

Global stock markets were mixed to slightly up overnight. U.S. stock indexes are weaker at midday. Corporate earnings reports will be in focus for stock traders this week. We are in the “dog days” of summer, whereby trading volumes in many markets wane as traders and investors step away from markets and take family vacations. Much of Europe is on vacation during August. Markets are likely to be mostly quieter until after the U.S. Labor Day holiday in early September.

Traders are still watching China's military exercises near Taiwan. A Wall Street Journal headline reads, “China's military exercises showcase modern fighting force preparing for possible war in the Taiwan Strait.” This news is also likely keeping a modest safe-haven bid in the gold market.

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The key outside markets today see Nymex crude oil prices higher and trading around $90.50 a barrel. Crude oil last Friday hit a 4.5-month low. The U.S. dollar index is lower at midday. The yield on the 10-year U.S. Treasury note is fetching around 2.8%. The 2-year U.S. T-note yield is 3.209, which has the yield curve still inverted and is one clue the U.S. is in or headed toward economic recession.

Technically, October gold futures bears still have the overall near-term technical advantage. However, a fledgling price uptrend is still in place on the daily bar chart to suggest a market bottom is in place. Bulls' next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,720.00. First resistance is seen at the August high of $1,801.00 and then at 1,825.00. First support is seen at today's low of $1,776.20 and then at $1,769.50. Wyckoff's Market Rating: 4.0.

September silver futures prices hit a five-week high today. September silver futures bears have the overall near-term technical advantage. However, prices are in a fledgling uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $22.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today's high of $20.745 and then at $21.00. Next support is seen at $20.51 and then at $20.00. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 450 points at 359.70 cents today. Prices closed nearer the session high and hit a five-week high today. The copper bears have the overall near-term technical advantage. However, prices are trending up on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at today's high of 362.25 cents and then at 370.00 cents. First support is seen at today's low of 353.15 cents and then at 350.00 cents. Wyckoff's Market Rating: 3.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Heavy price pressure on gold, silver after strong U.S. jobs data

Gold and silver prices are are solidly lower in early U.S. trading Friday, in the wake of a surprisingly strong U.S. employment report that may force the Federal Reserve to become even more aggressive in its monetary policy tightening. The U.S. dollar index and U.S. Treasury yields jumped on the jobs news, which in turn helped push gold and silver prices down. October gold futures were last down $21.70 at $1,774.70. September Comex silver futures were last down $0.507 at $19.615 an ounce.

This morning’s U.S. jobs report for July, showed a very strong rise of 528,000 in non-farm payrolls job growth. A gain of around 260,000 was expected. The June jobs report showed a rise of 372,000 non-farm jobs. The overall unemployment rate in July fell to 3.5% from 3.6% in June. After today’s strong jobs numbers, “the Fed’s dovish pivot is not going to happen,” said one market commentator on Bloomberg radio.

Global stock markets were flat to slightly up overnight. U.S. stock indexes are pointed toward lower openings when the New York day session beings, and sold off after the strong non-farm payrolls number.

The marketplace is still a little uneasy amid the escalation in tensions between the U.S. and China, the world’s two largest economies, after U.S. House Speaker Nancy Pelosi’s visit to Taiwan this week. China is conducting aggressive military exercises around Taiwan and also announced sanctions against Nancy Pelosi and her family. U.S. Secretary of State Blinken said China’s military exercises near Taiwan are a worrisome escalation.

The key outside markets today see Nymex crude oil prices near steady and trading around $88.50 a barrel. Crude oil on Thursday hit a 4.5-month low. The U.S. dollar index is sharply higher in early U.S. trading and made a big up-move after the jobs report. The yield on the 10-year U.S. Treasury note is fetching around 2.85%.

Other U.S. economic data due for release Friday includes the consumer credit report.

Technically, the October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is still in place on the daily bar chart to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at this week’s high of $1,801.00 and then at $1,825.00. First support is seen at Thursday’s low of $1,769.50 and then at this week’s low of $1,759.70. Wyckoff's Market Rating: 3.0

September silver futures bears have the overall near-term technical advantage. However, recent price gains suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $20.00 and then at this week’s high of $20.51. Next support is seen at $19.40 and then at $19.00. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

Gold, silver pressured at mid-week by higher USDX, bond yields, lower oil

Gold and silver prices are lower at midday Wednesday. Rising U.S. Treasury yields, a firmer U.S. dollar index and lower crude oil prices at mid-week are squelching buying interest in the precious metals. An up-tick in trader/investor risk appetite today is also bearish for the safe-haven metals. October gold futures were last down $14.50 at $1,765.30. September Comex silver futures were last down $0.234 at $19.905 an ounce.

Global stock markets were steady to weaker overnight. U.S. stock indexes are solidly higher at midday. Trader and investor anxiety has somewhat receded as U.S. House Speaker Nancy Pelosi visited Taiwan Tuesday evening without incident—at least not yet. China has vowed retaliation over her visit and plans on conducting a large-scale military exercise around Taiwan.

U.S. Treasury yields have up-ticked this week as U.S. Federal Reserve officials this week reiterated they plan to keep raising U.S. interest rates to choke off problematic price inflation. The yield on the 10-year U.S. Treasury note is fetching around 2.75%.

Sprott launches new ESG-focused gold ETF

The key outside markets today see Nymex crude oil prices solidly lower and trading around $91.50 a barrel. An OPEC-plus meeting Wednesday saw the group raise its collective production by only 100,000 barrels per day. The U.S. dollar index is higher at midday.

Technically, October gold futures bears have the overall near-term technical advantage. However, a fledgling price uptrend is still in place on the daily bar chart to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,720.00. First resistance is seen at today’s high of $1,779.10 and then at this week’s high of $1,794.80. First support is seen at today’s low of $1,759.70 and then at $1,750.00. Wyckoff's Market Rating: 3.0.

September silver futures bears have the overall near-term technical advantage. However, a price downtrend has been negated to suggest a market bottom is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.50. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at this week’s high of $20.51 and then at $20.75. Next support is seen at today’s low of $17.75 and then at $19.40. Wyckoff's Market Rating: 3.0.

September N.Y. copper closed down 550 points at 346.45 cents today. Prices closed nearer the session low today. The copper bears have the overall near-term technical advantage. However, a steep six-week-old price downtrend on the daily bar chart has been negated and prices are starting to trend up. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 313.15 cents. First resistance is seen at this week’s high of 359.70 cents and then at 365.00 cents. First support is seen at today’s low of 344.65 cents and then at 335.00 cents. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley