Mild price pressure on gold ahead of Fed Chair Powell testimony
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(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Wednesday. The marketplace is tentative just ahead of the U.S. data point of the week: testimony before Congress from Fed Chairman Jerome Powell. August gold was last down $2.50 at $1,945.30 and July silver was down $0.129 at $23.11.
Powell’s comments at his semi-annual monetary policy report to Congress on Wednesday and Thursday start with the House Financial Services Committee hearing at 10:00 a.m. eastern time today. Just before the hearing begins Powell’s prepared text for his opening remarks will be released. The marketplace will be closely watching the testimony for any fresh clues on the timing of any future U.S. interest rate increases, or how long the Fed might pause on raising rates.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. The S&P 500 and Nasdaq stock indexes are not far below last week’s 10-month highs and are in near-term price uptrends.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are near steady and trading around $71.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.738%.
U.S. economic due for release Wednesday includes the MBA mortgage applications survey, the Johnson Redbook weekly retail sales report.
Technically, the gold futures bulls have the slight overall near-term technical advantage. However, the bears have re-established a price downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at the overnight high of $1,950.40 and then at this week’s high of $1,971.80. First support is seen at this week’s low of $1,940.80 and then at the June low of $1,936.10. Wyckoff's Market Rating: 5.5
The silver bulls and bears are back on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at the June high of $24.62. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at $23.50 and then at $24.00. Next support is seen at $23.00 and then at $22.875. Wyckoff's Market Rating: 5.0.
Source: Kitco NEWS
