(Kitco News) - Gold prices are sharply higher up and silver prices moderately up in midday U.S. trading Tuesday. The two precious metals are being boosted by a depreciating U.S. dollar index that hit a 3.5-year low today, and by falling U.S. Treasury yields that hit a two-month low earlier today and give the Federal Reserve more leeway if they are thinking about cutting U.S. interest rates. Perceived bargain hunting in gold is also featured today. August gold was last up $45.50 at $3,353.00. September silver prices were last up $0.298 at $36.465.
Traders are starting to look ahead to what is arguably the most important U.S. data point of the month—the June employment situation report from the Labor Department on Thursday (out one day early due to the Fourth of July holiday Friday). The key non-farm payrolls number is seen coming in at up 110,000 versus a rise of 139,000 in the May report.
The key outside markets today see the U.S. dollar index weaker and hit another 3.5-year low. Nymex crude oil futures prices are firmer and trading around $65.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.265% after earlier hitting a two-month low.
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 today’s high of $3,370.50 and then at $3,400.00. First support is seen at today’s low of $3,313.70 and then at $3,300.00. Wyckoff's Market Rating: 6.5
September silver futures bulls have the overall near-term technical advantage but trading has turned choppy and sideways at higher levels recently. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $37.73. The next downside price objective for the bears is closing prices below solid support at $35.00. First resistance is seen at $37.00 and then at $37.50. Next support is seen at $36.00 and then at last week’s low of $35.535. Wyckoff's Market Rating: 7.0
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