Powerful greenback keeping strangle-hold on gold, silver

(Kitco News) – Gold prices are slightly up and silver prices weaker in early U.S. trading Tuesday. Gold hit an 8.5-month low overnight and silver a two-year low. The U.S. dollar index continues its assault on the major world currencies and that remains the main bearish element punishing the metals markets. Solidly lower crude oil prices today are also squelching the metals market bulls. August gold futures were last up $2.00 at $1,733.70. September Comex silver futures were last down $0.322 at $18.805 an ounce.

Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins. Trader and investor risk appetite remains dented amid recession and inflation fears. Asian countries are also dealing with the worrisome spread of Covid.

The U.S. data point of the week will be Wednesday’s consumer price index report for June, which is seen coming in up 8.5%, year-on-year. In the May report, CPI was up 8.6% annually.

The key outside markets today see Nymex crude oil prices sharply down and trading around $99.00 a barrel. The U.S. dollar index is up and hit another 20-year high early today. The yield on the 10-year U.S. Treasury note is fetching 2.921%.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and chain stores sales indexes, the NFIB small business index, and the IBD/TIPP economic optimism index.

Technically, the August gold futures bears have the solid overall near-term technical advantage as prices hit an 8.5-month low overnight. 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 $1,700.00. First resistance is seen at this week’s high of $1,743.00 and then at $1,750.00. First support is seen at today’s low of $1,721.60 and then at $1,710.00. Wyckoff’s Market Rating: 1.5

September silver futures bears have the solid overall near-term technical advantage as prices hit a two-year low overnight. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at the overnight high of $19.135 and then at $19.50. Next support is seen at the overnight low of $18.63 and then at $18.50. Wyckoff’s Market Rating: 1.0.

Shared by Golden State Mint on GoldenStateMint.com