(Kitco News,Mon. Aug. 14th, 2023) – Gold and silver prices are modestly down in quieter early U.S. trading Monday. Gold and silver bulls remain steadfast as U.S. Treasury bond yields have been rising and the U.S. dollar has been appreciating on the foreign exchange markets. The bearish near-term technical postures for both metals favor the bears, which is also inviting chart-based speculators to the short sides of the two metals. December gold was last down $5.60 at at $1,940.80 and September silver was down $0.083 at $22.665.

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Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are pointed to slightly higher openings when the New York day session begins.

There is more dour economic news coming out of China. The Country Garden Holdings property firm is reportedly in financial trouble. The firm is the largest privately held property developer in China. The Chinese offshore yuan has weakened and is near its low for the year against the U.S. dollar, at 7.28. China’s stock market sold off Monday on the Country Garden news.

Meantime, broker SP Angel said in a morning email dispatch that China’s Zhongzhi Enterprise Group Co., one of largest wealth managers in China, missed payments to clients on multiple high-yield investment products. Four major Chinese wealth management firms managed by Zhongzhi Group are reported to have defaulted on their fixed-income products. Chinese banking regulators have set up a task force due to the scale of the default and the large number of affected clients. The move highlights the extent to which officials have been alarmed by the liquidity crunch at Zhongrong and trying to minimize contagion risks, Bloomberg reported.

In other news, Goldman Sachs economists are now forecasting the Federal Reserve will hold steady on its monetary policy until the second quarter of 2024, when at that time they expect the Fed to make an interest rate cut.

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are down and trading around $82.25 a barrel.Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 4.15%.

There is no major U.S. economic data due for release Monday, but the data pace picks up rapidly Tuesday.

Live Gold Price

Technically, the gold futures bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in December futures above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,939.20. First resistance is seen at the overnight high of $1,948.20 and then at Friday’s high of $1,953.60. First support is seen at $1,939.20 and then at $1,925.00. Wyckoff’s Market Rating: 4.0.

The silver bears have the overall near-term technical advantage. Prices are trending lower on the daily bar chart. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the June low of $22.34. First resistance is seen at $23.00 and then at $23.255. Next support is seen at $22.50 and then at the June low of $22.34.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com