Gold Up Ahead Of Fed Chairman Powell's Jackson Hole Speech
(Kitco News) - Gold prices are moderately up in early U.S. trading Friday, as a weaker U.S. dollar on this day is supportive for the precious metals markets. Still, the greenback bears have had the better week, which in turn has allowed the gold and silver markets to at least stabilize from recent downside pressure that pushed both metals to multi-month lows last week. December gold futures were last up $4.80 an ounce at $1,198.80. September Comex silver was last up $0.078 at $14.62 an ounce.
A highlight of the trading week is the annual meeting of world central bankers in Jackson Hole, Wyoming, that begins in earnest today. Fed Chairman Powell is slated to speak this morning at 9:00 a.m. EDT at the symposium. However, many do not expect Powell to reveal much in terms of markets-moving comments. This year’s confab is being deemed as more low-key than past years, when the meetings have produced important proclamations from world central bankers.
Reports overnight said Asian demand for gold bullion is picking up, on perceived bargain hunting.
Low- to mid-level trade talks between the U.S. and China have ended with reportedly no significant results. Each country on Thursday levied new tariffs on each other’s products.
The other key outside market today finds Nymex crude oil prices higher and trading just below $69.00 a barrel.
U.S. economic data due for release Friday includes durable goods orders.
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 Thursday’s high of $1,203.40 and then at this week’s high of $1,208.40. First support is seen at the overnight low of $1,189.50 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 Thursday’s high of $14.75 and then at this week’s high of $14.875. Next support is seen at the overnight low of $14.45 and then at the August low of $14.315. Wyckoff's Market Rating: 2.0.