Gold, silver see modest corrective price rebounds
(Kitco News) - Gold and silver prices are modestly higher in early U.S. trading Thursday. Mild corrective bounces are seen after gold hit an 8.5-month low and silver a two-year low on Wednesday. A stronger U.S. dollar index that hit a 20-year high this week and down-trending crude oil prices remain bearish elements weighing down the precious metals markets. August gold futures were last up $5.70 at $1,742.00. September Comex silver futures were last up $0.141 at $19.30 an ounce.
Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The marketplace has quickly digested Wednesday afternoon’s release of the minutes of the last FOMC meeting. The marketplaces sees a 96% chance the Federal Reserve will raise its key Fed funds rate by 75 basis points at its next FOMC meeting.
In overnight news, U.K. Prime Minister Boris Johnson said he has agreed to resign this fall, over the pandemic partying scandal.
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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.
The key outside markets today see Nymex crude oil prices firmer and trading around $99.50 a barrel. This U.S. holiday-shortened week has still seen Nymex crude fall by around $10 a barrel. The U.S. dollar index is weaker after hitting a 20-year high Wednesday. The yield on the 10-year U.S. Treasury note is fetching 2.954%. The 2-year/10-year note yield curve is presently inverted, which is one clue of impending U.S. recession.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the international trade report, the monthly chain store sales index and the weekly DOE liquid energy stocks report.
Technically, the August gold futures bears have the solid overall near-term technical advantage as prices hit an 8.5-month low Wednesday. 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 $1,750.00 and then at Wednesday’s high of $1,771.50. First support is seen at the overnight low of $1,734.70 and then at this week’s low of $1,730.70. Wyckoff's Market Rating: 1.5
September silver futures bears have the solid overall near-term technical advantage as prices hit a two-year low Wednesday. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May low of $20.525. 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 $19.85. Next support is seen at $19.00 and then at this week’s low of $18.705. Wyckoff's Market Rating: 1.0.