Gold Prices and Silver Trading
In early U.S. trading on Wednesday, gold prices are modestly up while silver is slightly down. The gold market is seeing short covering from futures traders ahead of the release of the FOMC minutes from the Federal Reserve this afternoon. As of now, August gold is up $5.40 at $1,934.90, while September silver is down $0.067 at $23.045.
Market Overview
Asian and European stock markets experienced mostly lower trading overnight. U.S. stock indexes are expected to open lower when the New York day session begins. Despite the holiday-shortened U.S. trading week, there is still significant activity in the marketplace. Later today, the FOMC minutes will be released, providing insights into the Federal Reserve’s stance. Additionally, the employment situation report for June will be out on Friday, with the non-farm payrolls number expected to increase by 240,000.
Euro Zone and U.S.-China Relations
The Euro zone producer price index for May came in down 1.5% year-on-year, slightly worse than expectations for a decline of 1.3%. In other news, U.S. Treasury Secretary Janet Yellen will be traveling to China on Thursday for meetings with high-level Chinese officials. This meeting occurs during a time of heightened tensions between the U.S. and China.
Key Outside Markets
In today’s key outside markets, the U.S. dollar index is slightly stronger. Nymex crude oil prices are trading higher at around $71.25 a barrel. The benchmark 10-year U.S. Treasury note yield is currently around 3.85%.
Other U.S. Economic Releases
Several other U.S. economic releases are expected today, including the weekly MBA mortgage applications survey, the Johnson Redbook weekly retail sales report, the IDB/TIPP economic optimism index, domestic auto industry sales, and manufacturers’ shipments and inventories.
Technical Analysis
From a technical standpoint, the bears have the overall near-term advantage in the gold futures market. There is a six-week price downtrend on the daily bar chart. The next upside price objective for the bulls is to close August futures above solid resistance at $2,000.00. On the downside, the bears’ next near-term objective is to push prices below solid technical support at $1,900.00. The first resistance is seen at this week’s high of $1,939.90, followed by $1,950.00. The first support is seen at the overnight low of $1,927.60, followed by this week’s low of $1,917.70. Wyckoff’s Market Rating: 4.0.
Similarly, in the silver market, the bears have the overall near-term advantage. Prices have been in a six-week downtrend on the daily bar chart. The bulls’ next upside objective is to close September futures prices above solid technical resistance at the June high of $24.835. Conversely, the next downside objective for the bears is to close prices below solid support at the March low of $20.425. First resistance can be found at last week’s high of $23.335, followed by $23.50. On the other hand, first support is seen at last week’s low of $22.485, followed by the June low of $22.34. Wyckoff’s Market Rating: 4.0.
