(Kitco News) – Gold prices are moderately lower in early U.S. trading Tuesday. The precious metal is feeling the pressure of a solid rebound in the U.S. dollar index, which hit a three-week high today. The gold and silver market bulls are also looking for a new fundamental spark to reignite price rallies. August gold futures were last down $4.20 an ounce at 1,395.80. September Comex silver prices were last up $0.01 at $15.06 an ounce.
The greenback has seen a recent boost from some stronger U.S. economic data, including last Friday’s employment report that was very upbeat and gave pause to those reckoning a U.S. interest rate cut was on the doorstep.
The U.S. economic highlight of this week will be Fed Chairman Jerome Powell speaking to the U.S. House of Representatives on U.S. monetary policy on Wednesday morning. He follows that up with testimony to a Senate panel on Thursday. Powell will surely be asked by lawmakers what he thinks about President Trump bashing him recently, including pondering firing him. Powell may also shed some light on when the next U.S. interest rate increase is coming, or not.
Asian and European stock markets were mostly weaker in quieter overnight trading. U.S. stock indexes are pointed toward moderately lower openings when the New York day session begins.
In a geopolitical matter that is presently on the back burner of the marketplace, Iran continues its sabre rattling against the U.S. The regime said Monday it intends to further breach its nuclear agreement with the United Nations unless the U.S. eases economic sanctions against Iran.
The other key “outside market” today see Nymex crude oil prices higher and trading around $58.00 a barrel.
U.S. economic data due for release Tuesday is again light and includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the NFIB small business index.
Technically, the gold bulls still have the overall near-term technical advantage. However, a six-week-old uptrend on the daily bar chart is in jeopardy. Bulls need to show power soon to keep it alive. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the June high of $1,442.90. Bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at last week’s low of $1,384.70. First resistance is seen at $1,400.00 and then at Monday’s high of $1,409.90. First support is seen at the July low of $1,384.70 and then at $1,380.00. Wyckoff’s Market Rating: 6.5.
September silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.625 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at Monday’s high of $15.15 and then at $15.25. Next support is seen at the July low of $14.915 and then at $14.75. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff
For Kitco News