Make Kitco Your Homepage

Price gains in gold, silver as U.S. dollar backs down

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 higher in early U.S. trading Thursday, supported by a weaker U.S. dollar index on this day. The USDX had been on a bull run that earlier this week saw its price hit a nearly 20-year high. The recent rally in crude oil prices is also a bullish outside market force for the metals markets. Short covering in the futures markets and perceived value buying in the cash markets are featured in both metals. October gold futures were last up $12.30 at $1,764.50. September Comex silver futures were last up $0.218 at $19.125 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The U.S. data point of the day is the second estimate of second-quarter gross domestic product growth estimate, which is expected to be down 0.5% versus down 0.9% in the first quarter.

In overnight news, China’s central bank announced a one trillion yuan stimulus plan amid the severe headwinds facing the world’s second-largest economy and the consequences of China’s zero-Covid policy.

European market watchers will closely scrutinize today’s release of the minutes of the last meeting of the European Central Bank.

The marketplace is awaiting the Jackson Hole, Wyoming Federal Reserve annual symposium, which begins Thursday and including a speech from Fed Chairman Jerome Powell Friday morning. Past Jackson Hole Fed meetings have significantly moved markets. Markets are expecting Powell to lean hawkish on U.S. monetary policy and on the Fed’s fight against inflation.   

Qatar boosts gold reserves to record levels after buying 14.8 tonnes in July

The key outside markets today see Nymex crude oil prices higher and trading around $95.00 a barrel. The U.S. dollar index is lower in early U.S. trading. Meantime, the yield on the 10-year U.S. Treasury note is fetching 3.086%. Bond yields have been on the rise recently.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the second-quarter GDP estimate and the Kansas City Fed manufacturing survey.

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 $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 the overnight high of $1,759.30 and then at $1,775.00. First support is seen at the overnight low of $1,753.80 and then at Wednesday’s low of $1,745.50. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

September 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 $20.00. The next downside price objective for the bears is closing prices below solid support at the July low of $18.01. First resistance is seen at this week’s high of $19.50 and then at $20.00. Next support is seen at $20.00 and then at this week’s low of $18.605. 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.