(Kitco News) - Gold and silver prices are firmer in early U.S. trading Thursday, supported by a wilting U.S. dollar index that overnight hit a 3.5-year low. Precious metals gains are modest, however, as tensions in the middle east have significantly de-escalated this week. August gold was last up $6.00 at $3,348.40. July silver prices were last up $0.374 at $36.485.
Asian and European stocks were mixed to firmer overnight. U.S. stock indexes are pointed to firmer openings today in New York. Risk aversion has receded this week but trader/investor risk appetite is not robust, either. The Israel-Iran ceasefire appears to be holding.
President Trump on Wednesday slammed Fed Chairman Jerome Powell and said he has a few people in mind to replace him when his term expires next year. Reads a Barron’s headline today: “Trump may name next Fed chair early. Why it would fuel inflation and tank the dollar.” The headline suggests Trump’s new Fed chair pick would be very easy on monetary policy, which could prompt inflation and further depreciate the greenback.
The key outside markets today see the U.S. dollar index lower and hitting a 3.5-year low. Nymex crude oil futures prices are slightly up and trading around $65.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.27%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Chicago Fed national activity index, the third estimate of first-quarter GDP, including the price indexes, durable goods orders, the advance economic indicators, pending home sales, and the Kansas City Fed manufacturing survey.
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 the June high of $3,476.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at Tuesday’s high of $3,385.00 and then at $3,400.00. First support is seen at Wednesday’s low of $3,325,50 and then at this week’s low of $3,308.30. Wyckoff's Market Rating: 6.5.
July 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 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 the overnight high of $36.77 and then at $37.00. Next support is seen at $36.00 and then at Wednesday’s low of $35.63. Wyckoff's Market Rating: 7.0.
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