(Kitco News) - Gold prices are lower in midday U.S. trading Tuesday. Risk appetite in the general marketplace has improved a bit this U.S. holiday-shortened trading week and that’s bearish for safe-haven gold. However, silver prices are sharply up and hit a 13-year high, on technical buying and on perceived value buying, given gold’s steep ascent to record highs in recent months. August gold was last down $16.40 at $3,401.00. July silver prices were up $0.857 at $37.30.
Risk appetite is not robust but neither is risk aversion keen so far this week. President Trump left the Group of Seven summit in Canada early amid the tensions in the Middle East. Speaking to reporters Monday, Trump said he needed to be in Washington to help manage the U.S. response to the Irael-Iran conflict. In social media posts, Trump leaned hawkish on Iran, saying that nation should have “signed the deal I told them to sign.” He then said in another post, “Everyone should immediately evacuate Tehran. He also indicated he’s working on something “much bigger” than a ceasefire deal between Israel and Iran.
Meantime, the Fed’s FOMC meeting began this morning and ending Wednesday afternoon with a statement and press conference from Fed Chair Powell. The Fed is not expected to cut interest rates.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are higher and trading around $73.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.4%.
Technically, August gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $3,313.10. First resistance is seen at $3,425.00 and then at $3,450.00. First support is seen at today’s low of $3,384.40 and then at $3,358.50. Wyckoff's Market Rating: 8.0.
July silver futures bulls have the solid overall near-term technical advantage and gained more power today. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $37.50 and then at $38.00. Next support is seen at $37.00 and then at $36.50. Wyckoff's Market Rating: 8.5.
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