(Kitco News) - Gold prices are trading near steady and silver prices are higher in early U.S. trading Tuesday, just ahead of highly anticipated comments from a major central bank official. August gold was last up $0.30 at $2,363.80. September silver was up $0.347 at $31.26.
On tap in the U.S. today, Federal Reserve Chairman Jerome Powell is set to speak in front of the U.S. Senate Banking Committee this morning. The marketplace has currently priced in two rate cuts this year, with 70% chance of a cut in September. Powell’s comments to Congress this week and the key U.S. inflation reports (CPI Thursday and PPI Friday) could change that marketplace thinking.
Asian and European stock indexes were mixed to weaker overnight. U.S. stock indexes are pointed toward firmer openings and record highs for the S&P 500 and Nasdaq when the New York day session begins. Record-high U.S. stock indexes are a bearish element for the safe-haven gold and silver markets, from a competing asset class perspective.
In overnight news, China’s Guangzhou Futures Exchange said it will launch the first platinum and palladium futures contracts in the country in an effort to boost China’s involvement in platinum group metals, including improving domestic hedging.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are a bit weaker and trading around $82.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.288%.
U.S. economic reports out Tuesday includes the weekly Johnson Redbook retail sales report and the NFIB small business index.
Technically, August gold bulls have the firm 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 the overnight high of $2,375.50 and then at $2,400.00. First support is seen at Monday’s low of $2,358.30 and then at $2,350.00. Wyckoff's Market Rating: 6.5.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $33.05. 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 last week’s high of $31.79 and then at $32.00. Next support is seen at $31.00 and then at Monday’s low of $30.71. Wyckoff's Market Rating: 7.0.
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