(Kitco News) - Gold prices are posting slight gains in early U.S. trading Thursday, while silver prices are moderately up. Trader and investor risk appetites are upbeat late this week, evidenced by the U.S. stock indexes hitting three-month highs overnight. That is limiting buying interest in the safe-haven metals. August gold was last up $3.50 at $3,325.90. July silver prices were last up $0.315 at $33.475.
The marketplace is mulling over the news that a three-judge panel from the U.S. Court of International Trade in New York on Wednesday ruled against President Trump’s sweeping “Liberation Day” tariffs. The federal court has nationwide jurisdiction over tariff and trade disputes. The ruling found that Trump exceeded his authority under the International Emergency Economic Powers Act by imposing the tariffs without congressional approval. The Trump administration filed a notice of appeal. Bottom line: A sustained loss for Trump could scramble much of his trade agenda and impact how other countries negotiate with the U.S. Traders and investors will watch this development closely and it will likely remain very fluid.
Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to solidly higher openings today in New York. Risk appetite is upbeat in the general marketplace today.
The FOMC minutes from Wednesday afternoon contained no major surprises but the Wall Street Journal reported the minutes “strongly suggest the Fed isn’t close to lowering rates anytime soon.” The FOMC minutes indicated higher concerns about stagflation—slower economic growth and higher inflation.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures prices are slightly firmer and trading around $62.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.55%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the second estimate for second-quarter GDP, pending home sales and the weekly DOE liquid energy stocks report. Several Federal Reserve officials are also scheduled to speak today.
Technically, August gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at Wednesday’s high of $3,352.00 and then at $3,375.00. First support is seen at $3,300.00 and then at the overnight low of $3,269.10. Wyckoff's Market Rating: 6.5.
July silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at the May low of $31.78. First resistance is seen at $33.75 and then at $34.015. Next support is seen at $33.00 and then at $32.74. Wyckoff's Market Rating: 5.5.
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