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Gold, silver see moderate price gains, more upside likely

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(Kitco News) - Gold and silver prices are moderately up in early U.S. trading Wednesday. Bulls remain very strong and are looking to add to their recent upside price action. August gold futures were last up $9.30 an ounce at $1,953.70. September Comex silver prices were last up $0.24 at $24.54 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. Focus at mid-week is on the Federal Reserve’s Open Market Committee (FOMC) that began meeting Tuesday to discuss U.S. monetary policy and ends this afternoon with a statement and press conference from Fed Chairman Powell. No changes in policy are expected but the Fed is expected to reiterate U.S. interest rates will remain low for a long time amid the challenges of dealing with the pandemic. As always, the FOMC statement and comments from Powell will be closely scrutinized. The Federal Reserve on Tuesday extended by three months (until December) some emergency lending programs.

U.S. stock indexes have been supported recently by corporate earnings reports that have generally beat market expectations.

Meantime, Republican senators are presently splintered regarding a new stimulus package for Americans, heading into their August recess.

The important outside markets today see Nymex crude oil prices firmer and trading around $41.50 a barrel. The U.S. dollar index is weaker. The yield on the benchmark U.S. Treasury 10-year note is currently trading around the 0.59% level.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, advance economic indicators, pending home sales, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,880.00. First resistance is seen at the overnight high of $1,960.00 and then at this week’s record high of $1,974.70. First support is seen at the overnight low of $1,942.70 and then at $1,900.00. Wyckoff's Market Rating: 9.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bulls have the strong overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at this week’s high of $26.275 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $22.00. First resistance is seen at Monday’s high of $24.82 and then at $25.00. Next support is seen at $24.00 and then at $23.50. Wyckoff's Market Rating: 9.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.