(Kitco News) - Gold and silver prices are sharply down and hit three-week lows in midday U.S. trading Tuesday, as the geopolitical situation in the Middle East has taken a rapid and surprising turn toward de-escalation of military conflict—at least for now. August gold was last down $69.10 at $3,326.20. July silver prices were last down $0.537 at $35.645.
News that Iran and Israel have agreed to a ceasefire, and notions that Iran probably won’t continue to retaliate against the U.S., have put keener risk appetite back into the marketplace today. President Trump wrote on social media: “On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end, what should be called, the 12-day war.”
U.S. stock indexes are sharply higher at midday.
Federal Reserve Chairman Jerome Powell spoke to a House panel today on U.S. monetary policy. However, Powell delivered no markets-moving surprises to traders and investors.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures prices are sharply lower and trading around $64.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.306%.
Technically, August gold futures bulls have the overall near-term technical advantage but are fading. 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 $3,300.00. First resistance is seen at $3,350.00 and then at the overnight high of $3,385.00. First support is seen at $3,300.00 and then at $3,269.10. Wyckoff's Market Rating: 6.5.
July silver futures bulls have the overall near-term technical advantage. However, a bearish broadening pattern has formed on the daily bar chart, which begins to suggest a market top is in place. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $37.405. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at this week’s high of $36.315 and then at $37.00. Next support is seen at today’s low of $35.195 and then at $35.00. Wyckoff's Market Rating: 6.5.
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