(Kitco News) - Gold and silver prices are sharply higher and at two-week highs in midday U.S. trading Wednesday, following some weaker U.S. economic data and on the heels of dovish remarks from Federal Reserve Chairman Jerome Powell. August gold was last up $34.70 at $2,368.10. July silver was up $1.192 at $30.545.
A big batch of U.S. economic data released today was highlighted by some weaker ISM services numbers and weekly jobless claims that remain near a one-year high. Traders now await Friday’s monthly U.S. employment report for June. The key non-farm jobs number is seen coming in at up 200,000 versus a 272,000 gain in the May report. Today’s ADP national employment report for June came in at up 150,000 jobs versus expectations for up 160,000.
Meanwhile, Federal Reserve Chairman Jerome Powell leaned easier on U.S.
monetary policy in a speech at a European Central Bank confab in Portugal
Tuesday. Powell said the Fed has made progress on reducing inflation, but
added the Fed needs to see more evidence that inflation is on a sustainable path back toward the 2% target. Reads a Wall Street Journal headline today: “Powell puts rate cuts back into view.”
U.S. S&P 500 and Nasdaq stock indexes are indexes hit record highs today. Some markets close early today for the U.S. Independence Day holiday on Thursday, when all U.S. markets are closed. The U.K. holds general elections Thursday, which some are calling the most important in many years.
The key outside markets today see the U.S. dollar index solidly lower. Nymex crude oil prices are firmer and trading around $83.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.363%. Technically, August gold bulls have the overall near-term technical advantage and gained fresh power today. 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 $2,304.70. First resistance is seen at today’s high of $2,374.50 and then at $2,382.60. First support is seen at $2,350.00 and then at this week’s low of $2,327.40. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the overall near-term technical advantage and have regained upside momentum. 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 $28.90. First resistance is seen at $31.00 and then at $31.225. Next support is seen at $30.50 and then at $30.00. Wyckoff's Market Rating: 6.5
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