(Kitco News, Mon. Aug. 22nd, 2022) – Gold and silver prices are down in midday U.S. trading Monday and hit three-week lows early on. A strong U.S. dollar index that hit a five-week high overnight and is very close to its 20-year high scored in July is keeping the precious metals market buyers scarce at present. October gold futures were last down $14.40 at $1,738.80. September Comex silver futures were last down $0.139 at $18.93 an ounce.
U.S. stock indexes are solidly lower at midday. Traders and investors are concerned and more risk averse to start the trading week, amid what is perceived to be a still-aggressive Federal Reserve that is hell-bent on lowering inflation even if it causes a U.S. economic recession. The marketplace is eagerly awaiting the late-week Jackson Hole, Wyoming Federal Reserve annual symposium, including a speech from Fed Chairman Jerome Powell Friday morning. Past Jackson Hole Fed confabs have produced significant monetary policy statements from the U.S. central bank.
In overnight news, China cut its one- and five-year prime loan rates Monday, a move that was expected following the rate cuts last week.
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Hedge funds cautious on gold and silver as Fed pivot could prove to be premature |
The key outside markets today see Nymex crude oil prices down and trading around $89.75 a barrel. The U.S. dollar index is sharply up and hit a five-week high. The USDX is back very close to the 20-year high scored in July. The yield on the 10-year U.S. Treasury note is fetching 3.028%. Rising bond yields recently are also bearish for the precious metals markets.
Technically, October gold futures prices hit a three-week low today. The gold futures bears have the firm overall near-term technical advantage and have momentum on their side. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at today’s high of $1,752.30 and then at Friday’s high of 1,762.70. First support is seen at today’s low of $1,730.40 and then at $1,717.00.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
September silver futures prices hit a three-week low early on today. The silver bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the August high of $20.87. The next downside price objective for the bears is closing prices below solid support at the July low of $18.01. First resistance is seen at last Friday’s high of $19.48 and then at $20.00. Next support is seen at today’s low of $18.605 and then at $18.25. Wyckoff’s Market Rating: 2.0.
September N.Y. copper closed down 280 points at 363.55 cents today. Prices closed near mid-range today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 385.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at the August high of 371.30 cents and then at 380.00 cents. First support is seen at last week’s low of 354.20 cents and then at 350.00 cents.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com