(Kitco News) - Gold and silver prices are a bit weaker in early U.S. trading Tuesday, on some mild profit-taking pressure from the shorter-term futures traders and some chart consolidation. August gold was last down $7.60 at $3,398.90. September silver prices were last down $0.124 at $39.205.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed to slightly weaker openings today in New York, after scoring record highs Monday.
The greenback may be losing upside momentum. The U.S. dollar index last week hit a three-week high and prices have rebounded well off the early-July low. However, Bloomberg reports currency options markets are signaling the U.S. dollar will come under renewed pressure heading into August. One-month risk reversals in the Bloomberg Dollar Spot Index have shifted into negative territory, favoring protection against dollar weakness. Peter Kinsella, head of foreign-currency strategy at Union Bancaire Privee Ubp SA, told Bloomberg "we could see a weaker dollar" and that the dollar "probably hasn’t bottomed out yet.”
Traders and investors are awaiting a speech by Federal Reserve Chairman Jerome Powell later today amid mounting pressure on Powell from the Trump administration to resign.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures are weaker and trading around $66.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.38%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook weekly retail sales report and the Richmond Fed business survey.
Technically, August gold futures bulls have the firm 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 this week’s high of $3,416.90 and then at $3,450.00. First support is seen at $3,375.00 and then at this week’s low of $3,351.00. Wyckoff's Market Rating: 7.0.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend 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 $36.00. First resistance is seen at this week’s high of $39.38 and then at the July high of $39.57. Next support is seen at this week’s low of $38.365 and then at $38.00. Wyckoff's Market Rating: 8.0.
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