(Kitco News, Wed. July 7th,2021) – Gold and silver prices are higher in early U.S. trading Tuesday, ahead of the most important U.S. data point of the week: the Federal Reserve’s Open Market Committee (FOMC) minutes that are out at 2:00 p.m. EDT this afternoon. Bullish outside markets today are lifting the metals, as crude oil prices are higher and the U.S. dollar index is weaker. U.S. Treasury yields are also falling. August gold futures were last up $14.20 at $1,808.20 and September Comex silver was last up $0.326 at $26.50 an ounce.
Global stock markets were mixed but mostly firmer overnight. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins, with the S&P and Nasdaq at or near record highs. Traders are awaiting Wednesday afternoon’s release of the minutes of the June FOMC meeting, hoping for clues on the timing of the Fed’s policy moves that are likely to be gradual tightening of monetary policy in the coming months. There are also growing ideas that the FOMC minutes this afternoon may not be as hawkish as some market watchers expect.
In overnight news, the European Union forecast Euro zone inflation in 2021 at 1.9% and in 2022 at 1.4%. Both numbers are up just slightly from the EU’s last forecast, but still not close to being problematic. Other inflation reports, however, have seen hotter Euro zone inflation than the EU is forecasting.
The key outside markets early today see the U.S. dollar index slightly lower. Nymex crude oil futures are higher and trading around $74.75 a barrel. Prices Tuesday hit a 6.5-year high of $76.98. Energy traders are trying to assess the recently concluded OPEC meeting that ended in disagreement with no changes to oil output. Saudi Arabia and the United Arab Emirates are in sharp disagreement on the UAE’s production level. Such could unravel the oil cartel down the road and could lead to all-out pumping by the cartel members. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.35%. Treasury yields have been falling recently and this week hit a four-month low.
Other U.S. economic data due for release Wednesday includes the weekly chain store sales index and the Johnson Rebook retail sales report, the MBA mortgage applications survey, and the IBD/TIPP economic optimism index.
Technically, gold futures bulls and bears are on a level overall near-term technical playing field but the bulls have momentum on their side now. A four-week-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,750.10. First resistance is seen at this week’s high of $1,815.70 and then at $1,825.00. First support is seen at $1,800.00 and then at the overnight low of $1,794.10. Wyckoff’s Market Rating: 5.0.
The silver bears have the slight overall near-term technical advantage. However, a six-week-old downtrend on the daily bar chart has been negated. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the June low of $25.58. First resistance is seen at this week’s high of $26.91 and then at $27.00. Next support is seen at this week’s low of $26.10 and then at $26.00
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)