Make Kitco Your Homepage

Gold, silver see price pressure amid firmer U.S. dollar

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Thursday, weighed down by a higher U.S. dollar index and the recent slump in crude oil prices. August gold futures were last down $4.90 at $1,833.60. July Comex silver futures were last down $0.281 at $21.14 an ounce.

Global stock markets were mixed overnight, with European shares mostly down and Asian shares mostly up. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. It appears the marketplace has made a pivot from focusing more on inflation to now focusing more on U.S. economic recession. Many commodity markets are selling off, led by crude oil, on concerns of lower demand in the coming months. Federal Reserve Chairman Powell’s comments to a Senate panel on Wednesday did little to alleviate worries the U.S. economy will slip into recession in the coming months. Powell said it will be challenging for the Fed to engineer a soft landing for the U.S. economy, amid the central bank’s aggressive tightening of its monetary policy. Powell speaks to a U.S. House panel Thursday.

In overnight news, the Euro zone’s June manufacturing purchasing managers’ index (PMI) came in at 52.0 versus 54.6 in May. The June PMI was forecast at 53.8.

Fed's Powell weighs on recession risks, reaffirms commitment to aggressive rate hikes

The key outside markets today see Nymex crude oil prices weaker and trading around $105.75 a barrel. The U.S. dollar index is firmer in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.141%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the U.S. flash manufacturing and services purchasing managers indexes, the Kansas City Fed manufacturing survey, and the DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, the August gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the June high of $1,882.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at the overnight high of $1,841.90 and then at this week’s high of $1,850.30. First support is seen at this week’s low of $1,824.50 and then at $1,815.00. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at the overnight high of $21.425 and then at Wednesday’s high of $21.675. Next support is seen at $21.00 and then at the June low of $20.845. Wyckoff's Market Rating: 2.5.

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.