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(Kitco News) - Gold and silver prices are posting sharp losses in early U.S. trading Thursday, with gold scoring a three-month low. A still-hawkish U.S. Federal Reserve has put the squeeze on the precious metals market bulls. August gold was last down $28.60 at $1,940.40 and July silver was down $0.695 at $23.41.
Traders and investors are digesting the just-concluded FOMC meeting of the Federal Reserve, in which the Fed paused on its rate-hike cycle, but the FOMC statement and Fed Chair Powell's press conference leaned firmly hawkish on U.S. monetary policy. The Fed's "hawkish pause" pushed the U.S. dollar index and U.S. Treasury yields higher. The European Central Bank is presently meeting and is expected to raise its main interest rate by 25 basis points.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
In overnight news, China's central bank made another move to ease its monetary policy by cutting another key interest rate. The move follows a batch of downbeat economic data released by China Thursday.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are firmer and trading around $69.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.82%.
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| Inflation figures could be government 'gaslighting', true inflation is 2-3 times higher - Michael Wilkerson |
It's a very busy day for U.S. economic released Thursday, including the weekly jobless claims report, the Empire State manufacturing survey, the Philadelphia Fed business outlook survey, retail sales, import and export prices, industrial production and capacity utilization, Treasury international capital data, and manufacturing and trade inventories.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls have lost the overall near-term technical advantage. The bears have re-established a price downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,957.70 and then at Wednesday's high of $1,973.90. First support is seen at $1,935.00 and then at $1,925.00. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bulls have the slight overall near-term technical advantage but are fading. A fledgling price uptrend on the daily bar chart has been negated. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at the June high of $24.62. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at $24.00 and then at $24.50. Next support is seen at today's low of $23.285 and then at $23.00. Wyckoff's Market Rating: 5.5.
