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Gold, Silver Prices Bounce As U.S. Dollar Pulls Back

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(Kitco News) - Gold and silver prices are moderately higher in midday U.S. trading Tuesday, supported by a drop in the U.S. dollar index early this week. Also, the competing asset class of U.S. equities is weaker today. June gold futures were last up $3.40 an ounce at $1,284.90. July Comex silver was last up $0.027 at $14.96 an ounce.

In the spotlight now is the Federal Open Market Committee (FOMC) meeting that began this morning and ends Wednesday afternoon with a statement and a press conference from Fed Chairman Jerome Powell. While no change in U.S. monetary policy is expected at this meeting, traders will closely scrutinize the wording of the FOMC statement and the comments from Powell.

U.S.-China trade talks resumed today, with U.S. officials in Beijing. U.S. Treasury Secretary Mnuchin said in an interview late Monday that the talks are near conclusion and could wrap up next week. He added there remains some work to do on the matter, however. Most of the marketplace is fairly optimistic the U.S. and China will reach a trade deal in the coming weeks.

The key “outside markets” today see the U.S. dollar index down on more profit taking after hitting a two-year high last Friday. Meantime, Nymex crude oil prices are higher and trading around $64.00 a barrel. Both of these markets were in bullish postures for the metals markets today.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed near mid-range today. The bears have the overall near-term technical advantage. A nine-week-old downtrend line is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at last week’s high of $1,290.90 and then at $1,300.00. First support is seen at $1,280.00 and then at $1,275.00. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures prices closed near mid-range today. The silver bears have the overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $15.40 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at last week’s high of $15.12 and then at $15.25. Next support is seen at today’s low of $14.835 and then at the April low of $14.775. Wyckoff's Market Rating: 3.5.

July N.Y. copper closed up 90 points at 290.55 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage amid recent choppy trading at higher price levels. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 300.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 284.35 cents. First resistance is seen at today’s high of 292.35 cents and then at 295.00 cents. First support is seen at today’s low of 288.00 cents and then at the April low of 286.25 cents. Wyckoff's Market Rating: 6.5.

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