(Kitco News) - Gold prices are firmly up and silver sharply higher in midday U.S. trading Thursday. Both metals touched nearly two-week highs. Perceived bargain hunting and technical buying are featured as gold and silver chart postures have turned more bullish late this week. The precious metals bulls are also more confident following the weaker U.S. retail sales report earlier this week. A Barron’s headline today reads: “The Fed needs to cut rates eventually amid this economic slowdown.” August gold was last up $21.60 at $2,368.70. July silver was last up $1.151 at $30.72.
Switzerland’s central bank Thursday unexpectedly cut its main interest rates for a second consecutive time to 1.25%. This news also benefited the metals market bulls, on ideas of easing monetary policies from the world’s major central banks.
In other overnight news, China bank officials kept one- and five-year prime loan rates unchanged at 3.45% and 3.95%, respectively. This follows the central bank decision to leave its benchmark one-year medium term lending rate at 2.50% earlier this month.
Meantime, the Bank of England today kept its rates steady at 5.25%.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are firmer and hit a seven-week high today, trading around $82.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently around 4.28%.
Technically, August gold bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $2,304.20. First resistance is seen at today’s high of $2,379.50 and then at $2,400.00. First support is seen at $2,350.00 and then at today’s low of $2,338.50. Wyckoff's Market Rating: 6.0.
July silver futures bulls have firm the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $32.00. The next downside price objective for the bears is closing prices below solid support at the June low of $28.73. First resistance is seen at $31.00 and then at $31.67. Next support is seen at $30.00 and then at today’s low of $29.41. Wyckoff's Market Rating: 7.0.
(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.)
