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(Kitco News) - Gold prices are posting mild gains in midday U.S. trading Thursday but are near their daily highs. The yellow metal has rebounded from sharp overnight losses that pushed prices to a three-month low. A sharp drop in the U.S. dollar index today, as well as a decline in U.S. Treasury yields, helped to lift the gold market. Short covering from the futures traders is featured. August gold was last up $2.20 at $1,971.00 and July silver was down $0.185 at $23.925.
Still, gains in gold have been constrained after the end of this week's 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 so-called “hawkish pause” initially pushed the U.S. dollar index and U.S. Treasury yields higher. However, a downbeat U.S. industrial production report today helped to pressure the USDX and drop Treasury yields.
The European Central Bank today raised its main interest rate by 25 basis points, as expected.
Global stock markets were mixed overnight. U.S. stock indexes are solidly up near midday.
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.
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| Gold remains a strategic asset to hold as the Federal Reserve maintains its hawkish stance - World Gold Council's Cavatoni |
The other key outside market today sees Nymex crude oil prices solidly higher and trading around $70.50 a barrel. That's also supportive for the metals markets.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, August gold futures prices hit a three-month low early on today. Bulls have the slight overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at today's low of $1,936.10. First resistance is seen at last week's high of $1,987.80 and then at $2,000.00. First support is seen at 1,950.00 and then at today's low of $1,936.10. Wyckoff's Market Rating: 5.5.
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
July silver futures prices hit a two-week low early on today. The silver bulls have the overall near-term technical advantage. However, a fledgling uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. 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 this week's high of $24.52 and then at last week's high of $24.62. Next support is seen at today's low of $23.27 and then at $23.00. Wyckoff's Market Rating: 6.0.
July N.Y. copper closed up 260 points at 389.60 cents today. Prices closed nearer the session high today and hit a five-week high. The copper bulls have gained the slight overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 410.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 354.50 cents. First resistance is seen at today's high of 390.20 cents and then at 395.00 cents. First support is seen at today's low of 381.15 cents and then at 378.00 cents. Wyckoff's Market Rating: 5.5.
