(Kitco News) - Gold prices are trading near unchanged and silver prices are lower in early U.S. trading Monday, following a tumultuous weekend and ahead of remarks from the head of the U.S. central bank. August gold was last up $0.20 at $2,420.90. September silver was down $0.252 at $30.91.
The marketplace appears to have quickly digested Saturday’s failed assassination attempt on former U.S. President Donald Trump.
Traders and investors are awaiting a midday speech Monday by Federal Reserve Chairman Jerome Powell to the Washington, D.C. Economics Club.
Stock and financial market bulls are still basking in the glow of last week’s perceived dovish lean on U.S. monetary policy by the Federal Reserve that has the marketplace expecting a U.S. interest rate cut in the next few months. Reads a Wall Street Journal headline today: “Interest rate cuts will soon be warranted, Chicago Fed’s Goolsbee says.”
Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The S&P 500 and the Nasdaq indexes hit record highs last week.
In overnight news, China GDP growth came in weaker than expected amid weaker consumer demand and a real estate slowdown. China’s economy grew 4.7%, year-on-year in the second quarter, down from 5.3% growth in the first quarter and an up 5.1% forecast. The GDP data came ahead of the start of the Central Committee third plenum, a four-day meeting of the Communist Party leadership to discuss long term economic reforms. Meantime, China’s central bank held its key monetary policy rates unchanged.
The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are slightly lower and trading around $82.00 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.211%.
U.S. economic reports out Monday include the Empire State manufacturing survey.
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 May contract high of $2,477.00. 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 $2,425.80 and then at the July high of $2,430.40. First support is seen at today’s low of $2,406.10 and then at $2,400.00. Wyckoff's Market Rating: 7.5.
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 the overnight high of $31.24 and then at $31.50. Next support is seen at Friday’s low of $30.62 and then at $30.45. Wyckoff's Market Rating: 7.0.
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