(Kitco News) - Gold prices are modestly up in early U.S. trading Tuesday. Trading in stock and financial markets is subdued early this week as market participants await a major central bank confab in the western U.S. later in the week. December gold was last up $6.30 at $3,384.70. September silver prices were up $0.076 at $38.115.
Traders and investors are awaiting the key Kansas City Federal Reserve annual Economic Policy Symposium that begins Thursday evening in Jackson Hole, Wyoming. Fed Chairman Jerome Powell on Friday is expected to unveil the Fed's new policy framework at the confab. Powell's speech could give the marketplace a new update on how much support there is to lower U.S. interest rates in September.
Global stock markets were mixed overnight. U.S. stock indexes are set to open a bit weaker when the New York day session begins.
In overnight news, President Trump called Russian President Putin Monday and urged him to begin making plans for a summit meeting with Ukrainian President Volodymyr Zelenskiy, to be followed by a trilateral gathering involving all three. Trump said he may be able to convince Russia to release as many as 1,000 prisoners as a show of good faith. Zelenskiy told reporters in Washington, D.C. Monday that a bilateral gathering should not carry any conditions and that he would be willing to discuss territorial issues with Putin, and that he was pleased Trump had agreed to participate in security guarantees as part of any peace deal.
China’s central bank Tuesday added a substantial amount of cash into its financial system, in a move that’s seen stabilizing bonds that have come under pressure from investors migrating into equities Bloomberg reports. The People’s Bank of China added a net 465.7 billion yuan ($65 billion) of short-term cash via reverse repurchase agreements, the largest daily net injection since July 25 and also the third-biggest this year. Yields on the benchmark 10-year bond steadied after touching the highest level since April. Chinese Bonds have been hit hard in recent trading sessions as optimism over U.S.-China trade talks and Beijing’s measures to fight deflation prompted a rally in local stocks. Signs China’s central bank will hold back from aggressively easing its monetary policy and a tax on interest income on new bonds are also crimping Chinese demand for debt instruments.
The key outside markets today see the U.S. dollar index slightly lower, with crude oil prices down and trading around $62.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.332%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report and new residential construction.
Technically, December 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 $3,500.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at this week’s high of $3,403.60 and then at $3,423.80. First support is seen at this week’s low of $3,368.00 and then at $3,350.00. Wyckoff's Market Rating: 7.0.
September 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 July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at this week’s high of $33.34 and then at $38.875. Next support is seen at the overnight low of $37.75 and then at last week’s low of $37.515. Wyckoff's Market Rating: 7.0.
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