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(Kitco News) – Gold and silver prices are slightly higher at noon in the US on Thursday, almost hitting daily highs in the early afternoon. There was some profit taking from short-term futures traders again today. In the quieter summer trading, bulls in the metals market are waiting for some spark to bring the markets out of their doldrums. August gold futures last rose $ 2.30 to $ 1,896.50, and July Comex silver futures climbed $ 0.043 at $ 28,045 an ounce.
US economic data for the week Thursday morning showed that the May CPI report rose 0.6%, slightly above the expected 0.5% rise. On an annualized basis, the CPI rose to 5.0% in May, against a 4.7% rise in April. Today’s report falls into the camp of those who think inflation could get too high in the coming months. In the short term, gold and silver traders are focusing more on bond yields following the CPI report and less on the bullish implications of rising inflation going forward.
The weekly US Jobless Claims Report showed a drop in jobless claims in the recent period, which was also considered slightly negative for the safe-haven metals.
Overnight, multidirectional dynamics was observed on world stock markets: European stocks remained largely unchanged, while Asian stocks were more stable. US stocks are rallying at noon, with the S&P 500 hitting a record high. Currently, the global market remains calm despite the absence of major geopolitical outbreaks and typical summer trading.
What may have escaped the attention of many market participants lately is the quiet, steady decline in US Treasury yields, which fell to more than a three-month low this week. The yield on 10-year US Treasuries is currently 1.52%. Rising commodity prices and some supply shortages, coupled with major economies breaking free from their pandemic shackles, have exacerbated the specter of growth and possibly troubled price inflation in the coming months. However, an important element that does not agree with the theory of escalating inflation is the yield on US government bonds, which remains near historically low levels. The persistently low yield on US bonds supports the Federal Reserve’s assertion that the inflation trajectory is temporary.
The European Central Bank held a regular meeting on monetary policy on Thursday. No changes in monetary policy were announced or expected.
The marketplace will follow the G7 meeting over the weekend. The draft communiqué of the meeting shows that the group will focus on its collective relationship with China and Russia.
Key foreign markets see the US dollar index slightly weaker today. Crude oil prices on the NYMEX are up slightly and are trading around $ 70 a barrel after hitting a 2.5-year high of $ 70.62 on Wednesday.
Technically, bulls in August gold futures still have a solid overall short-term technical edge. The daily bar chart is showing an uptrend from nine weeks ago. The next bulls target is to close above the solid resistance at the June high of $ 1,919.20. The next short-term bearish target is to push futures prices below the solid technical support at $ 1,800. The first resistance comes at this week’s high of $ 1,906.90 and then at $ 1,919.20. The first support is seen at $ 1,883.70 and then at today’s low of $ 1,871.80. Wyckoff Market Rating: 7.0
The bulls in July silver futures have an overall short-term technical edge. However, the nine-week uptrend on the daily histogram has stalled. The next upside target for silver is to close above the solid technical resistance at the May high of $ 28.90 an ounce. The next target for the bears is the close below the solid support at $ 26.00. The first resistance comes at this week’s high of $ 28.145, followed by $ 28.37. The next support is seen at today’s low of $ 27.475 and then at $ 27.31. Wyckoff Market Rating: 6.5.
July copper in New York closed down 435 points to 448.80 cents today. Prices closed near the mid-range today. Copper bulls have an overall short-term technical advantage. However, the daily histogram shows a downtrend from four weeks ago. The next bullish target for copper is to push prices to close above the solid technical resistance at 470.70 cents. The next downside target for the bears is closing prices below the solid technical support at 425.00 cents. The first resistance is seen at this week’s high of 456.00 cents, followed by 460.00 cents. First support is seen at the June low of 442.95 cents, followed by 440.00 cents. Wyckoff Market Rating: 7.0.
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