(Kitco News) - Gold prices are modestly lower and silver prices sharply down in early U.S. trading Thursday. The two precious metals markets are still feeling the aftereffect of comments Tuesday by Minneapolis Fed President Neel Kashkari, who leaned hawkish in his comments on U.S. monetary policy. Traders and investors are also bracing for a busy day for U.S. economic reports. August gold was last down $5.80 at $2,358.30. July silver was last down $0.868 at $31.505.
U.S. economic data releases today are highlighted by the second estimate of first-quarter gross domestic product. GDP is seen up 1.2% from the same time last year. The chain-weighted price index is seen up 3.1%, year-on-year.
Also due out Thursday is the weekly jobless claims report, advance economic indicators, pending home sales, and the weekly DOE liquid energy stocks report.
A couple of Federal Reserve officials are also slated to speak today.
Asian and European stock indexes were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. A Wall Street Journal headline today reads: “Rising bond yields weigh on stocks.” The yield on the benchmark 10-year U.S. Treasury note is on the rise recently and is presently fetching 4.59%. The German 10-year bond (bund) hit a yield of 2.72%--a new high for the year.
In other news, Anglo-American shares dropped after BHP Group dropped its takeover bid for Anglo. The takeover would have created the world’s largest copper miner.
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 modestly lower. Nymex crude oil prices are weaker and trading around $79.00 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.
(Hey! My “Markets Front Burner” weekly email report is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to my Front Burner list.)
