(Kitco News) - Gold prices are trading near steady and silver prices sharply down in midday U.S. trading Thursday. The two precious metals markets are still feeling the bearish aftereffect of comments Tuesday by Minneapolis Fed President Neel Kashkari, who leaned hawkish in his comments on U.S. monetary policy. August gold was last up $1.90 at $2,366.00. July silver was last down $0.798 at $31.575.
U.S. economic data releases today were highlighted by the second estimate of first-quarter gross domestic product. GDP came in at up 1.3%, year-on-year and was seen by the trade at coming in at up 1.2%. The chain-weighted price index was up 3.0% versus forecasts for up 3.1%, year-on-year. Gold prices did erase modest overnight losses following the data, as the U.S. dollar index sold off and U.S. Treasury yields down-ticked a bit.
Friday’s personal income and outlays report includes the closely watched PCE inflation indexes.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are lower and trading around $78.25 a barrel.
Technically, August gold futures prices hit a three-week low overnight. The bulls have the overall near-term technical advantage but have faded. A bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. First resistance is seen at $2,375.00 and then at this week’s high of $2,388.00. First support is seen at the overnight low of $2,343.30 and then at $2,325.00. Wyckoff's Market Rating: 6.0.
July silver futures bulls have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $29.00. First resistance is seen at the overnight high of $32.28 and then at $32.75. Next support is seen at the overnight low of $31.325 and then at $31.00. Wyckoff's Market Rating: 7.5 .
