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Gold, silver see corrective price rebounds, short covering

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(Kitco News) - Gold and silver prices are firmer in early U.S. trading Thursday, on modest corrective and short-covering bounces after recent selling pressure. October gold futures were last up $8.30 at $1,774.70. September Comex silver futures were last down $0.104 at $19.84 an ounce.

The marketplace has quickly digested Wednesday afternoon’s minutes from the last FOMC meeting of the Federal Reserve. Traders deemed the minutes neutral to just slightly dovish and markets showed no significant reactions to them.

Global stock markets were mixed overnight, with Asian indexes mostly down and European indexes mostly up. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock indexes have been enjoying price uptrends on the daily charts since early June. Corporate earnings reports are in focus this week.

In overnight news, the Euro zone consumer price index for July came in hot, at up 8.9%, year-on-year.

The key outside markets today see Nymex crude oil prices higher and trading around $89.25 a barrel. The U.S. dollar index is modestly higher in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.89%.

Gold will play a big role in the coming global 'monetary reset' as U.S dollar loses its dominance - Maxime Bernier

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, existing home sales and leading economic indicators.  

Live 24 hours gold chart [Kitco Inc.]

Technically, the October gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the August high of $1,814.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,725.00. First resistance is seen at Wednesday’s high of $1,786.30 and then at $1,800.00. First support is seen at this week’s low of $1,763.70 and then at the August low of $1,759.70. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $20.00 and then at $20.25. Next support is seen at $19.47 and then at $19.25. Wyckoff's Market Rating: 3.0.

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.