Gold, Silver Near Steady As Bulls Work To Stabilize Prices
(Kitco News) - Gold and silver prices are near steady in early U.S. trading Friday. After hitting 12-month lows on Thursday, the metals are pausing today. A weaker U.S. dollar index today and firmer crude oil prices are bullish outside market forces working in favor of the precious metals bulls so far today. August gold futures were last up $0.80 an ounce at $1,224.80. September Comex silver was down $0.027 at $15.38 an ounce.
World stock markets were mixed overnight, with European shares mostly down and Asian shares mostly up. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.
The Chinese yuan currency hit another 12-month low against the U.S. dollar today after the Chinese central bank guided its currency down by 0.9%--the largest single-move depreciation against the dollar in two years. The yuan has declined by 2.3% against the greenback in July.
The marketplace is still buzzing about the CNBC interview with President Donald Trump, in which he criticized the Federal Reserve for raising interest rates. Trump said he is “not thrilled” about the recent U.S. interest rate hikes and is worried the progress his administration has made on the U.S. economy could be undone by higher rates. Trump also implied a stronger U.S. dollar could be disadvantageous for U.S. foreign trade. Still, he called Fed Chairman Jerome Powell a good man for the job. The U.S. dollar was pressured on the news, U.S. Treasuries rallied and gold and silver prices pared losses.
The key “outside markets” today find Nymex crude oil prices modestly up and trading just below $68.00 a barrel. Meantime, the U.S. dollar index is modestly lower today, on a corrective pullback after hitting a 12-month high on Thursday.
There is no major U.S. economic data due for release Friday.
Technically, gold bears have the solid overall near-term technical advantage amid a 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 this week’s high of $1,245.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at $1,229.10 and then at $1,236.20. First support is seen at today’s low of $1,215.30 and then at this week’s low of $1,210.70. Wyckoff's Market Rating: 1.0
September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $15.90 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $15.50 and then at Wednesday’s high of $15.625. Next support is seen at this week’s low of $15.185 and then at $15.00. Wyckoff's Market Rating: 1.0.