(Kitco News) - Gold and silver prices are a bit higher in midday U.S. trading Tuesday, amid no monetary-policy-hawkish surprises in comments by the head of the U.S. central bank to a U.S. Senate panel. August gold was last up $4.90 at $2,368.50. September silver was up $0.147 at $31.06.
Federal Reserve Chairman Jerome Powell said in front of the U.S. Senate Banking Committee this morning that the U.S. economy has cooled off a bit but remains strong. “This is no longer a heated economy,” said Powell. Powell made no surprisingly hawkish comments that could have thrown cold water on the Fed cutting interest rates yet this year. At present, the marketplace has priced in two rate cuts this year, with around a 70% chance of a cut in September. “No great surprises” from Powell today, said one television pundit. Powell speaks to a House of Representatives panel on Wednesday morning.
Also coming into focus is the June U.S. consumer price index report on Thursday and the June producer price index on Friday.
U.S. stock indexes are mostly higher at midday and saw record highs for the S&P 500 and Nasdaq. Record-high U.S. stock indexes are a bearish element for the safe-haven gold and silver markets, from a competing asset class perspective. Such likely somewhat limited buying interest in the precious metals today.
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 firmer. Nymex crude oil prices are lower and trading around $81.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.312%.
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 $2,378.30 and then at $2,400.00. First support is seen at today’s low of $2,356.00 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 this week’s low of $30.71 and then at $30.45. Wyckoff's Market Rating: 7.0
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