Gold, silver weaker amid commodity markets slump

(Kitco News, Thurs. June 23rd 2022) – Gold and silver prices are modestly lower in midday U.S. trading Thursday, as the metals markets are participants in a general commodity market erosion led by crude oil. U.S. and global economic recession fears have hit the commodity markets hard amid ideas of reduced demand in the coming months, including for metals. August gold futures were last down $3.80 at $1,834.40. July Comex silver futures were last down $0.251 at $21.175 an ounce.

Global stock markets were mixed overnight, with European shares mostly down and Asian shares mostly up. U.S. stock indexes are mixed to firmer at midday. It appears the marketplace has made a pivot from focusing more on inflation to now focusing more on U.S. and/or global economic recession. Federal Reserve Chairman Powell’s comments to a Senate panel on Wednesday did little to alleviate worries the U.S. economy will slip into recession in the coming months. Powell said it will be challenging for the Fed to engineer a soft landing for the U.S. economy, amid the central bank’s aggressive tightening of its monetary policy. Powell is speaking to a U.S. House panel Thursday.

A commodity war is brewing; there is not enough copper to meet growing demand – Abrdn’s Minter

The key outside markets today see Nymex crude oil prices weaker and trading around $105.25 a barrel. The U.S. dollar index is firmer in midday trading. The yield on the 10-year U.S. Treasury note is fetching 3.05% and has dropped this week.

Technically, August gold futures bears have the overall near-term technical advantage. However, the recent sideways and choppy trading action at lower price levels is suggesting a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $1,882.50. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,850.30 and then at last week’s high of $1,861.50. First support is seen at this week’s low of $1,824.50 and then at $1,815.00.

July silver futures bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at today’s high of $21.495 and then at Wednesday’s high of $21.675. Next support is seen at $21.00 and then at the June low of $20.845. Wyckoff’s Market Rating: 2.5.

July N.Y. copper closed down 1,755 points at 376.80 cents today. Prices closed near the session low hit another 16-month low today. The copper bears have the solid overall near-term technical advantage. An accelerating three-week-old price downtrend is in place on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at 380.00 cents and then at 390.00 cents. First support is seen at 375.00 cents and then at 370.00 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com