(Kitco News) – Gold prices are solidly lower in midday U.S. trading Thursday, on some normal profit taking from the shorter-term futures traders and following some upbeat U.S. economic data released this morning. Still, gold and silver charts remain fully bullish. August gold futures were last down $9.60 an ounce at 1,414.00. September Comex silver prices were last down $0.206 at $16.425 an ounce.
Both precious metals were enjoying decent gains right around the opening of U.S. futures trading. However, a couple of stronger U.S. economic reports prompted some selling pressure. Durable goods orders in June were much stronger than expected and weekly jobless claims saw an unexpected drop. Both reports fall into the camp of the U.S. monetary policy hawks, who don’t want to see the Federal Reserve lower U.S. interest rates.
The European Central Bank left interest rates unchanged Thursday, but policymakers said they envision a “highly accommodative stance of monetary policy for a prolonged period of time.” The ECB said it “expects the key ECB interest rates to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to its aim over the medium term.”
Next week, the U.S. Federal Reserve’s Open Market Committee (FOMC) has its money policy meeting, and is expected to ease monetary policies at the meeting.
Slowing global economic growth has the central bankers worried. There was another downbeat report coming out of Germany today, as the Ifo business climate index fell in July.
The key “outside markets” today see Nymex crude oil prices higher and trading around $56.25 a barrel. Meantime, the U.S. dollar index is firmer and near this year’s high.
Technically, August gold futures prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart. The bulls still have the firm overall near-term technical advantage and are keeping in place a two-month-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the July high of $1,454.40. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,384.70. First resistance is seen at $1,420.00 and then at $1,425.00. First support is seen at 1,410.00 and then at $1,400.00. Wyckoff’s Market Rating: 7.0
September silver futures prices closed nearer the session low after hitting a 12-month high early on today. The silver bulls have the solid overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. 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 $15.835. First resistance is seen at today’s high of $16.685 and then at $16.75. Next support is seen at Wednesday’s low of $16.35 and then at this week’s low of $16.195. Wyckoff’s Market Rating: 7.5.
September N.Y. copper closed down 30 points at 270.85 cents today. Prices closed nearer the session low today. The copper bears have regained the overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the July high of 280.30 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 259.95 cents. First resistance is seen at today’s high of 273.85 cents and then at this week’s high of 275.95 cents. First support is seen at this week’s low of 268.75 cents and then at 265.00 cents. Wyckoff’s Market Rating: 4.0.
By Jim Wyckoff
For Kitco News