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Gold, silver see corrective price bounces at mid-week

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(Kitco News) - Gold and silver prices are moderately up in early U.S. trading Wednesday as the metals are seeing corrective rebounds from recent strong selling pressure. Bulls are working to stabilize the markets but have more work to do to suggest such. Bearish pennant patterns appear to be forming on the daily charts for both gold and silver. August gold futures were last up $8.40 at $1,785.70 and July Comex silver was last up $0.188 at $26.055 an ounce.

Global stock markets were flat to narrowly mixed overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins and are at or near their record highs. The marketplace at mid-week appears to be assuaged by comments made to U.S. lawmakers by Federal Reserve Chairman Jerome Powell this week that higher inflation is only transitory and that the Fed will not put the brakes on its easy money policies too soon.

In overnight news, the Euro zone’s composite purchasing managers index (PMI) flash number came in at 59.2 in June versus 57.1 in May, and also beat market expectations. The June composite PMI was the best number in 15 years. A reading above 50.0 suggests growth in the sector.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures are higher and trading around $73.30 a barrel after hitting a 2.5-year high of $73.58. overnight. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.475%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. flash manufacturing and services PMIs, new residential sales, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures bears have the overall near-term technical advantage. A bearish pennant pattern appears to be forming on the daily bar chart. Prices are trending lower on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,790.10 and then at $1,800.00. First support is seen at Tuesday’s low of $1,775.80 and then at last week’s low of $1,761.20. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. A bearish pennant pattern appears to be forming on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $27.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $26.135 and then at $26.555. Next support is seen at Tuesday’s low of $25.805 and then at this week’s low of $25.58. Wyckoff's Market Rating: 4.0.

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.