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Gold, Silver Prices Modestly Up Ahead Of FOMC Minutes

Kitco News

(Kitco News) - Gold and silver prices are modestly higher in early U.S. trading Thursday, on some more short covering in the futures markets and perceived bargain hunting in the cash markets after both metals hit multi-month lows earlier this week. Traders are awaiting this afternoon’s minutes from the latest meeting of the Federal Open Market Committee (FOMC). August gold futures were last up $2.80 an ounce at $1,256.40. July Comex silver was last up $0.052 at $16.095 an ounce.

The just-released ADP national employment report for June showed a rise of 177,000 versus the forecast for a gain of 185,000 jobs. The more important U.S. employment report from the Labor Department is out Friday morning, with the non-farm jobs number expected to come in at up 195,000 in June. The U.S. dollar index traded down to its session low following the ADP report, which is a friendly development for the precious metals markets today.

World stock markets were higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.

The U.S. and China remain headed for the Friday showdown on putting into effect their already-announced trade sanctions against each other. A Chinese official said Thursday the U.S. is firing shots to the world, including itself,” on the trade matter.

The other key “outside markets” today finds Nymex crude oil prices higher and just below the 3.5-year high hit on Tuesday, and trading around $74.50 a barrel. A UBS energy analyst said Brent crude oil prices could briefly hit $100.00 due to a world supply shortage.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the U.S. services PMI, the ISN non-manufacturing report, the global services PMI, the weekly DOE liquid energy stocks report and the FOMC minutes.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the firm overall near-term technical advantage amid the price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at the overnight high of $1,262.40 and then at $1,269.40. First support is seen at $1,250.00 and then at $1,245.00. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.50. First resistance is seen at today’s high of $16.195 and then at $16.25. Next support is seen at the overnight low of $15.97 and then at $15.75. Wyckoff's Market Rating: 2.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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