(Kitco News, Tues. July 16th, 2024 ) – Gold prices are trading higher and hit a seven-week high in early U.S. trading Tuesday. The bulls are strong and looking to push the yellow metal to a fresh record high. Technical buying and ideas of U.S. interest rate cuts on the horizon are fueling the precious metals bulls at present. August gold was last up $16.30 at $2,445.20. September silver was up $0.144 at $31.08.

A DowJones Newswires headline today reads: “Gold futures rise as banks bet on two U.S. interest rate cuts.” Fed Chairman Powell spoke in Washington, D.C. on Monday and signaled a “rate cut coming into view,” according to a Wall Street Journal headline.

Traders and investors are awaiting the U.S. data point of the day Tuesday, which is the retail sales report for June, seen coming in down 0.4% from the May report and compares to May’s report showing a 0.1% rise.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The S&P 500 and the Nasdaq indexes are not far below their record highs. A Barron’s headline today reads: “Rate-cut optimism is lifting markets.”

This week marks the start of China’s Central Committee third plenum, a four-day meeting of the Communist Party leadership to discuss long term economic reforms. The plenum occurs once every five years.

The key outside markets today see the U.S. dollar index just a bit firmer. Nymex crude oil prices are lower and trading around $80.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.191%.

Other U.S. economic reports out Tuesday include the weekly Johnson Redbook retail sales report, import and export prices, the NAHB housing market index, and manufacturing and trade inventories.

Technically, August gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the May contract high of $2,477.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,350.00. First resistance is seen at $2,450.00 and then at $2,477.00. First support is seen at today’s low of $2,424.50 and then at this week’s low of $2,406.10.

September silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the May high of $33.05. The next downside price objective for the bears is closing prices below solid support at the June low of $28.90. First resistance is seen at Monday’s high of $31.325 and then at $31.725. Next support is seen at last Friday’s low of $30.62 and then at $30.45.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com