Gold solidly up on easier Powell, friendly outside markets

gold was last up $19.20 at $2,387.10. September silver was up $0.159 at
$31.215.

Powell told a Senate committee Tuesday the U.S. jobs market has “cooled
considerably,” which further fueled speculation the Fed will cut interest
rates later this year. Markets are expecting the first rate cut to come in
September. Traders and investors are now awaiting the June U.S. consumer price index on Thursday and the June producer price index on Friday. Both reports are expected to show continued tame U.S. inflation numbers.
U.S. stock indexes are higher at midday and at record highs for the S&P
500 and Nasdaq.

A Dow Jones Newswires report today is headlined, “Central banks expected to keep hungrily adding to gold reserves.” The story said Citi analysts expect a record of around 1,100 metric tons of gold will be purchased by central banks this year. That would be up around 6% from last year.

The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil prices are higher and trading around $82.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.286%.

Technically, August gold bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the June high of $2,406.70. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at today’s high of $2,393.40 and then at $2,400.00. First support is seen at the overnight low of $2,369.70 and then at this week’s low of $2,356.00.

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 last week’s high of $31.79 and then at $32.00. Next support is seen at this week’s low of $30.71 and then at $30.45.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com