(Kitco News) – Gold and silver prices are modestly down in midday U.S. trading Tuesday, as the markets are on hold ahead of highly anticipated comments from the U.S. central bank chief this afternoon. August gold futures were last down $4.90 at $1,778.00 and July Comex silver was last down $0.20 at $25.82 an ounce.
The marketplace on Tuesday afternoon will closely scrutinize Federal Reserve Chairman Jerome Powell’s remarks to a House committee. Powell’s prepared text for today’s appearance on the coronavirus pandemic, released Monday afternoon, shows him reiterating the rise in inflation is transitory. Importantly, traders and investors will be watching the 2:00 p.m. EDT appearance for his replies to lawmakers’ questions. Powell is known to occasionally go “off-script” in his answers to questions.
Global stock markets were mixed overnight, with Asian shares mostly firmer and European shares mostly weaker. The U.S. stock indexes are higher at midday, with the Nasdaq stock index hitting a record high.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures are weaker and trading around $72.65 a barrel after hitting a 2.5-year high of $73.36. overnight. Brent crude traded above $75.00 overnight amid signs global demand for energy continues to increase. Reports said Russia is considering proposing OPEC and its allies increase output at the next OPEC meeting on July 1, with the world oil market presently estimated to need an additional 3 million barrels a day to satisfy demand.
The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.5%.
Technically, August gold futures bears have the overall near-term technical advantage. A three-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,826.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,790.10 and then at $1,800.00. First support is seen at last week’s low of $1,761.20 and then at $1,750.00. Wyckoff’s Market Rating: 4.0
July silver futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $27.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at this week’s high of $26.135 and then at $26.555. Next support is seen at this week’s low of $25.58 and then at $25.00. Wyckoff’s Market Rating: 4.0.
July N.Y. copper closed up 450 points at 422.85 cents today. Prices closed nearer the session high and saw more short covering today. The copper bulls and bears are on a level overall near-term technical playing field. A five-week-old downtrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 400.00 cents. First resistance is seen at today’s high of 425.90 cents and then at 433.95 cents. First support is seen at today’s low of 416.50 cents and then at this week’s low of 408.80 cents. Wyckoff’s Market Rating: 5.0.
