 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Gold and silver prices are solidly lower and at three-month lows in midday U.S. trading Thursday. Central banks are in focus late this week and they are still leaning hawkish on their monetary policies. That’s bearish for the precious metals markets, both from a demand perspective and as it makes the competing asset class of government bonds more attractive as bond yields are rising. August gold was last down $19.40 at $1,925.70 and July silver was down $0.31 at $22.50.
Norway’s central bank raised its main interest rate by 0.5% Thursday. The Bank of England met today on its monetary policy and raised its main rate by an aggressive 0.5%. Meantime, Federal Reserve Chairman Powell gave testimony to a U.S. Senate committee today, following his remarks to a House committee on Wednesday. Powell leaned hawkish but generally repeated comments from his post-FOMC meeting press conference in mid-June. He reiterated to Congress the Fed is not happy with inflation levels that are presently well above the central bank’s 2% annual target area. Powell also said two more interest rate increases this year are probable but did not specify the timing.
Global stock markets were mostly lower overnight. U.S. stock indexes are mixed at midday.
|
| The gold market remains the superior safe haven as the world deals with rising debt, high inflation and recession risks - Crescat Capital's Tavi Costa |
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are solidly lower and trading around $69.50 a barrel. Both of these key outside markets are also bearish for the metals on this day. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.864%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, August gold futures prices hit a 13-week low today. Bears have the slight overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. 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 $1,900.00. First resistance is seen at today’s high of $1,945.10 and then at $1,950.00. First support is seen at 1,910.00 and then at $1,900.00. Wyckoff's Market Rating: 4.5.
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
July silver futures prices hit a three-month low today. The silver bears have the overall near-term technical advantage. A choppy, six-week old price downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at today’s high of $22.75 and then at $23.00. Next support is seen at today’s low of $22.305 and then at $22.00. Wyckoff's Market Rating: 3.5.
July N.Y. copper closed down 270 points at 388.65 cents today. Prices closed nearer the session low today and hit an 11-week high early on. The copper bulls have the overall near-term technical advantage. Prices are in a four-week-old 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 370.00 cents. First resistance is seen at 392.70 cents and then at today’s high of 396.70 cents. First support is seen at this week’s low of 384.45 cents and then at 380.00 cents. Wyckoff's Market Rating: 6.0.
