Gold Weaker on Worries Federal Reserve Not So Easy
(Kitco News) - Gold and silver prices are moderately lower in early-afternoon U.S. trading Thursday. Some not-so-dovish comments from U.S. Federal Reserve officials heading into the annual Jackson Hole, Wyoming Federal Reserve symposium that began today had the precious metals traders in a selling mood. December gold futures were last down $6.90 an ounce at 1,508.90. September Comex silver prices were last down $0.106 at $17.045 an ounce.
In interviews with reporters at Jackson Hole, the Fed officials downplayed notions the Fed is on a path to implement a series of interest rate reductions. This follows the FOMC minutes release on Wednesday afternoon in which the statement said last month’s interest rate hike was still a “mid-cycle adjustment.” Fed Chairman Jerome Powell is set to give a speech at the Jackson Hole confab on Friday.
However, gold and silver losses today were limited on a surprisingly weak U.S. manufacturing report. The August flash manufacturing purchasing managers index (PMI) fell to 49.9—the lowest reading in about 10 years. A reading below 50.0 suggests contraction in the sector.
Purchasing managers’ surveys from Australia and the Euro zone were also downbeat today. The Eurozone manufacturing purchasing managers index (PMI) came in at 47.0 in August. A reading below 50.0 suggests contraction in the sector. Importantly, Germany, the workhorse for the Euro zone, saw its manufacturing PMI at only 43.6 in August.
Technically, December gold futures prices closed near mid-range. The bulls still have the firm overall near-term technical advantage. A 2.5-month-old uptrend is still in place on the daily bar chart. There are still no significant, early chart clues to suggest a market top is close at hand. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,546.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,488.90. First resistance is seen at today’s high of $1,514.60 and then at this week’s high of $1,523.60. First support is seen at $1,500.00 and then at $1,488.90. Wyckoff's Market Rating: 7.0
September silver futures prices closed nearer the session high today. The silver bulls still have the firm overall near-term technical advantage. An 11-week-old uptrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the August high of $17.49 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.51. First resistance is seen at this week’s high of $17.18 and then at $17.37. Next support is seen at this week’s low of $16.82 and then at $16.685. Wyckoff's Market Rating: 7.0.
September N.Y. copper closed down 275 points at 255.80 cents today. Prices closed nearer the session low and hit a two-week low today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 264.15 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 258.35 cents and then at 260.35 cents. First support is seen today’s low of 254.75 cents and then at the August low of 253.15 cents. Wyckoff's Market Rating: 1.0.