(Kitco News) – Gold and silver prices are posting good gains in early U.S. trading Monday. The precious metals are being supported by a lower U.S. dollar index and a dip in U.S. Treasury yields to start the trading week. August gold was last up $25.90 at $3,383.90. September silver prices were last up $0.416 at $38.88.
Asian and European stocks were mostly mixed overnight. U.S. stock indexes are pointed to firmer openings and near record highs today in New York.
In overnight news, The People’s Bank of China kept its key lending rates unchanged at its latest meeting, in line with market expectations. The one-year loan prime rate—the main rate for corporate and household loans—was held steady at 3.0%.
The Wall Street Journal reports U.S. Treasury Secretary Scott Bessent is trying to convince President Trump not to fire Federal Reserve Chairman Jerome Powell. Trump firing Powell would cast doubts over the Fed’s independence, would likely pressure the U.S. dollar and would push up Treasury yields, Bessent reportedly warned. News reports last week that Trump was set to fire Powell sent shudders through the financial markets and pushed gold prices higher. Soon after that news surfaced, Trump said he is not considering firing Powell.
Bloomberg Economics reports that while President Trump is strongly urging the Federal Reserve to cut U.S. interest rates, central bankers around the world are likely to ease their monetary policies. “The U.S. president’s tariff onslaught is likely to force further measured easing in coming months by most of the 23 central banks featured in the quarterly guide on the global monetary outlook,” said Bloomberg Economics.
The S&P 500 stock index has gone 17 sessions in a row without a move of 1% in either direction. That’s the longest stretch of listless price action since last December, reports Matt Maley at Miller Tabak & Co. Whenever a narrow rally loses steam, it usually signals most of the good news has been factored into stock prices.
The key outside markets today see the U.S. dollar index lower. Nymex crude oil futures are near steady and trading around $68.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.38%.
U.S. economic data due for release Monday is light and includes leading economic indicators.
Technically, August gold futures bulls have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the June low of $3,250.50. First resistance is seen at the July high of $3,389.20 and then at $3,400.00. First support is seen at the overnight low of $3,351.00 and then at last week’s low of $3,314.30. Wyckoff’s Market Rating: 6.5.
September silver futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $36.00. First resistance is seen at $39.00 and then at the July high of $39.57. Next support is seen at the overnight low of $38.365 and then at $38.00. Wyckoff’s Market Rating: 8.0.
Jim Wyckoff has spent over 25 years involved with the stock, financial and commodity markets. He was a financial journalist with the FWN newswire service for many years, including stints as a reporter on the rough-and-tumble commodity futures trading floors in Chicago and New York. As a journalist, he has covered every futures market traded in the U.S., at one time or another.
Jim is the proprietor of the “Jim Wyckoff on the Markets” analytical, educational and trading advisory service. Jim also worked as a technical analyst for Dow Jones Newswires and as the senior market analyst with TraderPlanet.com. Jim is also a consultant with the highly respected “Pro Farmer” agricultural advisory service. Jim was also the head equities analyst at CapitalistEdge.com. He received his degree from Iowa State University in Ames, Iowa, where he studied journalism and economics.
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