(Kitco News, Tues. July 19th, 2022) – Gold and silver prices are trading not far from unchanged in early U.S. trading Tuesday. A big drop in the U.S. dollar index this week is limiting selling interest in the precious metals. However, rising U.S. Treasury bond yields this week and a wobbly crude oil market are squelching the bulls. A lack of fresh, markets-moving economic or geopolitical news early this week has metals traders looking more at the outside markets for direction. August gold futureswere last up $1.70 at $1,711.80. September Comex silver futures were last down $0.08 at $18.76 an ounce.
Global stock markets were mixed overnight. U.S. stock indexes are pointed toward higher openings when the New York day session beings. Corporate earnings reports are on the front burner of the stock markets early this week. Otherwise, its summertime doldrums trading amid a lack of major, fresh news early this week.
In overnight news, the Euro zone consumer price index report for June came in at up 8.6%, year on year, which was right in line with market expectations.
Traders and investors are looking ahead to Thursday when the European Central Bank holds its regular monetary policy meeting. The ECB is expected to raise interest rates for the first time in 11 years, with many market watchers looking for a 0.5% rate increase. The U.S. Federal Reserve is expected to raise its key interest rate by at least 0.75% at next week’s FOMC meeting.
The key outside markets today see Nymex crude oil prices weaker and trading around $102.00 a barrel. The U.S. dollar index is solidly lower again in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 2.995%.
U.S. economic data due for release Tuesday and includes new residential construction and the weekly Johnson-Redbook and chain store retail sales reports.
Technically, the August gold futures bears have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,750.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,650.00. First resistance is seen at this week’s high of $1,722.00 and then at $1,735.00. First support is seen at $1,700.00 and then at the July low of $1,695.00.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
September silver futures bears have the solid overall near-term technical advantage as prices hit a two-year low overnight. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $19.00 and then at $19.36. Next support is seen at the overnight low of $18.51 and then at $18.00
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com