(Kitco News) – Gold prices are slightly higher in early U.S. trading Monday. The yellow metal and the silver market are treading water just ahead of big U.S. economic events happening as the week progresses. August gold futures were last up $0.80 an ounce at 1,420.10. September Comex silver prices were last up $0.023 at $16.42 an ounce.
On Tuesday the Federal Reserve’s Open Market Committee (FOMC) meets to determine monetary policy. The Fed is expected to lower interest rates at the conclusion of the meeting Wednesday afternoon. Friday the U.S. employment situation report for July is out. The key non-farm payrolls number is expected to be up around 165,000. In June, non-farm payrolls were up 224,000.
Also in focus this week is U.S.-China trade talks that are resuming at a high level. U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer are in Shanghai for discussions that began today.
Asian and European stocks mixed to firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session beings.
The key “outside markets” today see Nymex crude oil prices near steady and trading around $56.25 a barrel. The U.S. dollar index is up and today hit a new high for the year.
U.S. economic data due for release Monday is light and includes the Texas manufacturing outlook survey.
Technically, the gold bulls still have the solid overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the July high of $1,454.40. Bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at $1,400.00. First resistance is seen at $1,425.00 and then at last week’s high of $1,434.10. First support is seen at last week’s low of $1,411.10 and then at $1,400.00. Wyckoff’s Market Rating: 7.0
September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.625. First resistance is seen at $16.50 and then at last week’s high of $16.685. Next support is seen at $16.345 and then at last week’s low of $16.195. Wyckoff’s Market Rating: 7.5.
By Jim Wyckoff
For Kitco News