Gold, Silver Prices Weaker As USDX Gains
(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Thursday, with gold back below $1,200.00. The U.S. dollar index has regained some footing today after sliding lower most of this week, and that’s a daily negative for the precious metals markets. December gold futures were last down $5.90 an ounce at $1,197.30. September Comex silver was last down $0.165 at $14.585 an ounce.
U.S. and world stock markets were mixed to firmer overnight. By some accounts the S&P 500 stock index has now reached its longest bull run ever.
Despite low-level trade talks presently taking place, the U.S. and China each levied new tariffs on each other’s products Thursday—this time to the tune of $16 billion apiece.
The Australian dollar has dropped today on news the Prime Minister is stepping down and cabinet members have resigned.
In other overnight news, the Euro zone’s Markit purchasing managers index (PMI) came in at 54.4 in August from 54.3 in July. A reading above 50.0 suggests growth in the sector.
Traders have pretty much digested Wednesday afternoon’s FOMC minutes, which said the Fed will very likely in September raise U.S. interest rates for the third time this year. The U.S. dollar was boosted by the FOMC minutes.
Another highlight of the trading week will be the annual meeting of world central bankers in Jackson Hole, Wyoming, that begins late Thursday. Past years’ meetings have produced important proclamations from world central bankers. Fed Chairman Powell is slated to speak at the symposium.
The other key outside market today finds Nymex crude oil prices slightly lower and trading just below $68.00 a barrel.
U.S. economic data due for release today includes the weekly jobless claims report, the monthly house price index, the flash services and manufacturing PMIs, new residential sales, and the Fed’s Kansas City manufacturing survey.
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 the August low of $1,167.10. First resistance is seen at the overnight high of $1,203.40 and then at this week’s high of $1,208.40. First support is seen at this week’s low of $1,189.60 and then at $1,180.00. Wyckoff's Market Rating: 2.0
September silver futures bears 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 $14.75 and then at this week’s high of $14.875. Next support is seen at the overnight low of $14.50 and then at the August low of $14.315. Wyckoff's Market Rating: 2.0.