(Kitco News) - Gold and silver prices are sharply higher in early U.S. trading Wednesday, on the heels of dovish remarks from Federal Reserve Chairman Jerome Powell and amid a very busy U.S. data day. August gold was last up $25.90 at $2,359.30. July silver was up $1.232 at $30.585.
Many markets were assuaged, including the precious metals and the U.S. stock market, after Federal Reserve Chairman Jerome Powell leaned easier on U.S. monetary policy in a speech at a European Central Bank confab in Portugal Tuesday. Said Angus Campbell of Trade Nation in an email dispatch today: “Powell delivered a fairly dovish speech, with the headline being that the U.S. central bank has made progress on reducing inflation. But he went on to say that he needs to see more evidence that inflation is on a sustainable path back towards the 2% target before he will be happy to loosen monetary policy. Despite this, the market continues to assign a high probability for two 25-basis- point rate cuts before year-end.” Reads a Wall Street Journal headline today: “Powell puts rate cuts back into view.”
It’s a very busy U.S. economic data dump day Wednesday, including the weekly MBA mortgage applications survey, the ADP national employment report, the Challenger job-cuts report, weekly jobless claims, the international trade report, the ISM report on business services, the U.S. services purchasing managers index (PMI), the global services PMI, manufacturers’ shipments and inventories, the weekly DOE liquid energy stocks report, and the FOMC minutes.
Asian and European stock indexes were mixed but mostly firmer overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins, after the S&P 500 and Nasdaq stock indexes hit record high closes Tuesday. Some markets close early today for the U.S. Independence Day holiday on Thursday, when all U.S. markets are closed.
In overnight news, the Euro zone May producer price index fell 0.2%, month-on-month, and down 4.2%, year-on-year. Those numbers were close to market expectations.
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 slightly lower. Nymex crude oil prices are near steady and trading around $82.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.43%.
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 $2,300.00. First resistance is seen at $2,375.00 and then at
$2,382.60. First support is seen at $2,350.00 and then at the overnight
low of $2,335.70. Wyckoff's Market Rating: 6.0.
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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