Gold, silver slightly up amid falling bond yields
Gold, silver slightly up amid falling bond yields
Date: 16/07/2021
Jim Wyckoff Thursday July 15, 2021 12:46
(Kitco News) – Gold and silver prices are slightly up in midday dealings Thursday. The precious metals are seeing some mild support from falling U.S. Treasury yields recently that see the benchmark 10-year note fetching 1.319%. Treasury yields have declined this week due in part to notions Federal Reserve monetary policy will remain very accommodative in the coming months. August gold futures were last up $2.30 at $1,827.30 and September Comex silver was last up $0.089 at $26.36 an ounce.
Federal Reserve Chairman Jerome Powell’s testimony to a Senate committee Thursday did not offer any new insight following his remarks and prepared text to a House panel on Wednesday, when he leaned easy on monetary policy. Powell said the Fed is still a ways off on tapering its bond-buying program (quantitative easing). He also said the U.S. central bank still believes rising inflation is only transitory. Many think Powell and the Fed are behind the curve on the inflation front.
Global stock markets were mixed to weaker overnight. The U.S. stock indexes are mixed to weaker at midday.
In overnight news, China’s economic growth pace slowed in the second quarter, at up 7.9%, year-on-year. That number is still strong by all standards but does hint that China’s strong economic rebound from the pandemic is leveling off. China’s GDP was up 18.3% in the first quarter. China also reported its industrial production rose a higher-than-expected 8.3% in June. This overall strong data from China is a friendly element for the metals markets.
The new strain of Covid-19 continues to surge in some regions of the world, hitting Asia especially hard. This is reviving concerns that hard-hit countries’ economies will again start to suffer. This matter could put cap on global stock market rallies that have seen some major indexes hit record highs.
The key outside markets today see the U.S. dollar index higher, while Nymex crude oil prices are lower and trading around $72.50 a barrel.
Technically, the gold bulls have the overall near-term technical advantage. A fledgling price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,791.00. First resistance is seen at today’s high of $1,835.00 and then at $1,850.00. First support is seen at today’s low of $1,820.60 and then at $1,810.00. Wyckoff’s Market Rating: 6.0
The silver bulls and bears are on a level overall near-term technical playing field. 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 $26.575 and then at the July high of $26.91. Next support is seen at $26.00 and then at last week’s low of $25.82. Wyckoff’s Market Rating: 5.0.
September N.Y. copper closed up 550 points at 432.25 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage. 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 this week’s high of 436.40 cents and then at the July high of 440.25 cents. First support is seen at the July low of 422.65 cents and then at 420.00 cents. Wyckoff’s Market Rating: 5.5.
For Kitco News
