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(Kitco News) - Gold and silver prices are modestly lower in early 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 yields are rising. August gold was last down $8.80 at $1,936.30 and July silver was down $0.21 at $22.605.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Focus late this week is on central banks. 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 will give testimony to a U.S. Senate committee today, following his remarks to a House committee on Wednesday. Powell on Wednesday leaned hawkish but generally repeated comments from his post-FOMC meeting press conference in mid-June. He reiterated 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.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are lower and trading around $71.15 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.758%.
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| UK consumer prices remain eye-watering high; the global inflation threat should support long-term gold prices |
U.S. economic due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, existing home sales, leading economic indicators, the Kansas City Fed manufacturing survey and the weekly DOE liquid energy stocks report.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the gold futures bulls and bears are on a level overall near-term technical playing field. A six-week-old price downtrend is in place 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 Wednesday’s high of $1,950.40 and then at this week’s high of $1,971.80. First support is seen at this week’s low of $1,929.30 and then at $1,920.00. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
The silver bears have gained the overall near-term technical advantage. Silver bulls' next upside price objective is closing July futures 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 $23.00 and then at Wednesday’s high of $23.23. Next support is seen at this week’s low of $22.515 and then at $22.00. Wyckoff's Market Rating: 4.0.
