Gold, silver pummeled as USDX hits 20-yr. high, crude oil slumps
(Kitco News) - Gold and silver prices are sharply lower in midday U.S. trading Tuesday. Gold futures hit a 6.5-month low and silver a two-year low today. The precious metals are reeling from a stronger U.S. dollar index that scored a 20-year high today, and by big losses in crude oil that saw Nymex crude drop back below $100 a barrel. August gold futures were last down $33.10 at $1,768.40. September Comex silver futures were last down $0.542 at $19.12 an ounce.
Recession fears are on the rise, with some analysts and economists saying the U.S. is already in a recession. Global stock markets were mixed overnight, with Asian shares mostly up and European shares mostly down. U.S. stock indexes are solidly lower at midday.
In overnight news, the U.S. as soon as this week may start to roll back some U.S. tariffs on Chinese imports, which were imposed by the Trump administration. The move would be an attempt by the Biden administration to alleviate inflation/recession concerns.
The U.S. data point of the week is Friday’s employment situation report for June. The key non-farm payrolls number is expected to come in up 250,000 compared to the 390,000 rise in the May report.
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The key outside markets today see Nymex crude oil prices sharply down and trading around $100.00 a barrel. The U.S. dollar index is sharply higher and hit a 20-year high. The yield on the 10-year U.S. Treasury note is fetching 2.784%. Recent falling U.S. Treasury yields are one early clue that U.S. inflation may have peaked.
Technically, August gold futures prices hit a 6.5-month low today. Bears have the solid overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,783.40 and then at $1,792.00. First support is seen at today’s low of $1,764.30 and then at $1,750.00. Wyckoff's Market Rating: 2.0.
September silver futures hit another two-year low today. The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $19.50 and then at $20.00. Next support is seen at today’s low of $18.97 and then at $18.75. Wyckoff's Market Rating: 1.0.
July N.Y. copper closed down 1,700 points at 344.90 cents today. Prices closed near the session low today and hit a 1.5-year low. The copper bears have the solid overall near-term technical advantage. A steep four-week-old price downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 384.30 cents. The next downside price objective for the bears is closing prices below solid technical support at 335.00 cents. First resistance is seen at 350.00 cents and then at today’s high of 361.80 cents. First support is seen at today’s low of 343.00 cents and then at 340.00 cents. Wyckoff's Market Rating: 1.0.