Gold Gains As Trump Criticizes Federal Reserve
(Kitco News) - Gold prices are moderately up in early U.S. trading Tuesday and poked back above $1,200.00, as the U.S. dollar is under some pressure after President Trump again admonished the Federal Reserve. This week the gold and silver market bears are showing signs of exhaustion, to suggest near-term market bottoms are in place. December gold futures were last up $4.40 an ounce at $1,198.80. September Comex silver was last up $0.085 at $14.76 an ounce.
The feature in the marketplace today is a weaker U.S. dollar in the wake of remarks from Trump to supporters criticizing the Federal Reserve for raising interest rates. Trump reportedly said Fed Chairman Jay Powell is not doing the job the president had hoped he’d do, according to Reuters. The Fed has raised U.S. interest rates twice this year and is likely to raise them at least one more time this year.
U.S. and world stock markets were mostly firmer overnight and brushed off Trump’s comments on the Fed.
A Chinese central bank official has reportedly said China will not use its currency, the yuan, to gain leverage in its trade war with the U.S. The yuan has dropped around 10% against the U.S. dollar since April. The U.S. is set to slap more tariffs on China’s imported products this week, despite the world’s two largest economies holding low-level trade talks later this month.
A highlight of the trading week will be the annual meeting of world central bankers in Jackson Hole, Wyoming, late this week. The Fed’s FOMC minutes are also due out Wednesday afternoon.
The other key outside market today find Nymex crude oil prices firmer and trading just below $67.00 a barrel.
U.S. economic data due for release today is light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports.
Technically, gold bears still have the 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 December futures above solid resistance at $1,226.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,167.10. First resistance is seen at the overnight high of $1,203.10 and then at $1,212.50. First support is seen at Monday’s low of $1,189.60 and then at $1,180.00. Wyckoff's Market Rating: 2.5
September silver futures bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at the overnight high of $14.83 and then at $15.00. Next support is seen at $14.50 and then at last week’s low of $14.315 and then at $14.25. Wyckoff's Market Rating: 2.5.