Gold, Silver Tread Water Ahead Of Powell Testimony
(Kitco News) - Gold and silver prices are narrowly mixed and not trading far from unchanged in early U.S. trading Tuesday. The world marketplace is awaiting comments to the U.S. Senate today from Federal Reserve Chairman Jerome Powell. August gold futures were last up $0.40 an ounce at $1,240.10. September Comex silver was down $0.057 at $15.755 an ounce.
World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. In quieter summertime trading, U.S. stock indexes are near multi-month highs, to underscore the “risk-on” trader mentality in the marketplace at present.
On tap today, Powell testifies before the Senate Banking Committee on U.S. monetary policy. The marketplace will parse his words for clues on timing of future interest rate increases and also on economic growth prospects, inflation and wage pressures, and the present U.S. trade disputes.
While not really market-sensitive, the media is still buzzing about the summit meeting between U.S. President Trump and Russian President Putin on Monday. The news coverage is somewhat taking trader and investor attention away from other matters that may be more relevant to markets.
The key “outside markets” today find Nymex crude oil prices near steady and trading just below $68.00 a barrel. Recent solid losses in crude begin to suggest this market has topped out. World oil production is back on the rise after some recent outages from producing countries. The U.S. dollar index is weaker again today.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, industrial production and capacity utilization, the NAHB housing market index and Treasury international capital data.
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 last week’s high of $1,266.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at Monday’s high of $1,245.80 and then at $1,250.00. First support is seen at last week’s low of $1,236.20 and then at $1,230.00. Wyckoff's Market Rating: 2.0
September 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 Monday’s high of $15.90 and then at $16.00. Next support is seen at last week’s low of $15.70 and then at $15.50. Wyckoff's Market Rating: 2.0.