(Kitco News) - Gold prices are modestly up and silver sharply higher in early U.S. trading Thursday. The precious metals bulls are more confident late this week, 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 $7.60 at $2,354.40. July silver was last up $0.766 at $30.33.
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 is expected to keep rates steady at 5.25%.
Asian and European stock indexes were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are near steady and trading around $81.50 a barrel after hitting a seven-week high overnight. The benchmark 10-year U.S. Treasury note yield is presently 4.25%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, international transactions and the current account, new residential construction and the weekly DOE liquid energy stocks report.
Technically, August gold bulls have the slight 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 the overnight high of $2,359.20 and then at $2,375.00. First support is seen at the overnight low of $2,338.50 and then at $2,325.00. Wyckoff's Market Rating: 5.5.
July silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.67. 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 today’s high of $30.54 and then at $31.00. Next support is seen at $30.00 and then at the overnight low of $29.41. Wyckoff's Market Rating: 6.5.
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