Jim Wyckoff - Daily Gold Market Updates

Gold and silver prices are just modestly lower in midday trading Monday, after both markets scored 10-week lows overnight. The precious metals were under stronger selling pressure early on, amid a rally in the U.S. dollar index to a nine-week high overnight, following Friday’s strong U.S. jobs report. That report fell into the camp of the U.S. monetary policy hawks. However, the shorter-term gold and silver bulls stepped to buy and at least temporarily stop the bleeding today and do some perceived bargain-basement buying. August gold was last down $5.10 at $4,360.50. July silver prices were last down $0.263 at $68.88.

President Trump said over the weekend that Federal Reserve policymakers would be wrong to raise U.S. interest rates after the blowout U.S. jobs report Friday, while insisting he doesn’t want to influence Kevin Warsh before he chairs his first Fed meeting. “Nowadays when you have good reports, the market goes down because they think they’re going to raise interest rates,” Trump said in an interview with NBC’s Meet the Press that aired Sunday and as reported by Bloomberg. Raising the benchmark rate “is the wrong thing to do,” Trump said. “We should actually lower interest rates,” he said.

Meantime, a euro-zone interest-rate hike on Thursday is widely believed to place the European Central Bank at the vanguard of global tightening caused by the Iran war. The quarter-point increase expected for Thursday would be the most notable move so far, given that similar action in advanced economies has taken effect in much smaller jurisdictions.

In other metals news, China’s central bank extended its gold-buying streak in May, adding to holdings as prices of the precious metal remained under pressure. Bullion held by the People’s Bank of China rose by 320,000 troy ounces last month, according to data released on Sunday. The latest addition extended its buying streak to 19 months, the longest since at least 2015, when the PBOC began publishing more regular updates on its gold reserves.

Technically, August gold futures prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $4,627.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $4,162.60. First resistance is seen at the overnight high of $4,377.50 and then at $4,400.00. First support is seen at the overnight low of $4,293.00 and then at $4,250.00. Wyckoff's Market Rating: 3.0

July silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.66. First resistance is seen at $70.00 and then at $71.00. Next support is seen at the overnight low of $66.305 and then at $65.00. Wyckoff's Market Rating: 3.0

Gold and silver prices are lower and hit 10-week lows in early U.S. trading Monday. The precious metals are under selling pressure amid a rally in the U.S. dollar index to a nine-week high overnight, following Friday’s strong U.S. jobs report. That report fell squarely into the camp of the U.S. monetary policy hawks. After the report, the bond market priced in a quarter-point U.S. interest rate hike this year. That’s also bearish for the gold and silver markets. Technical selling is also featured in gold and silver futures to start the trading week, as the near-term chart postures for both metals are deteriorating. August gold was last down $14.40 at $4,351.00. July silver prices were last down $0.833 at $68.275.

In metals news, China’s central bank extended its gold-buying streak in May, adding to holdings as prices of the precious metal remained under pressure. Bullion held by the People’s Bank of China rose by 320,000 troy ounces last month, according to data released on Sunday. The latest addition extended its buying streak to 19 months, the longest since at least 2015, when the PBOC began publishing more regular updates on its gold reserves. Gold edged lower in May, marking a third consecutive monthly decline after it hit a record in late January. Persistent inflation concerns and expectations for higher-for-longer interest rates triggered by the war in the Middle East have weighed on the appeal of non-yielding assets. Global central-bank purchases have been a key pillar of support for bullion in recent years. Goldman Sachs Group Inc. said last month it expects the buying to be stepped up as geopolitical developments are likely to reinforce a push to diversify reserves.

Latest on U.S.-Iran war…

--Oil jumps as Iran and Israel exchange fire and tensions escalate

--U.S., Iran appear far from peace deal 100 days since war began

--U.S. floats steering frozen Iran assets to Gulf allies for repairs

--Asia-to-U.S. container rates spike 109% since Iran war started

--U.S. intercepts fresh Iranian attacks as peace talks stall

--Houthis to impose “complete ban” on Israeli ships in Red Sea

Trump still wants Fed interest rate cut. President Trump said over the weekend that Federal Reserve policymakers would be wrong to raise U.S. interest rates after a blowout U.S. jobs report Friday, while insisting he doesn’t want to influence Kevin Warsh before he chairs his first Fed meeting. “Nowadays when you have good reports, the market goes down because they think they’re going to raise interest rates,” Trump said in an interview with NBC’s Meet the Press that aired Sunday and as reported by Bloomberg. Raising the benchmark rate “is the wrong thing to do,” Trump said. “We should actually lower interest rates,” he said.

European Central Bank set to hike rates this week. A euro-zone interest-rate hike on Thursday is widely believed to place the European Central Bank at the vanguard of global tightening caused by the Iran war. The quarter-point increase expected for Thursday would be the most notable move so far, given that similar action in advanced economies has taken effect in much smaller jurisdictions.

Technically, August gold futures prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $4,627.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $4,162.60. First resistance is seen at the overnight high of $4,377.50 and then at $4,400.00. First support is seen at the overnight low of $4,293.00 and then at $4,250.00. Wyckoff's Market Rating: 3.0

July silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.66. First resistance is seen at $69.00 and then at $70.00. Next support is seen at the overnight low of $66.305 and then at $65.00. Wyckoff's Market Rating: 3.0

Gold and silver prices are lower and hit 10-week lows in early U.S. trading Monday. The precious metals are under selling pressure amid a rally in the U.S. dollar index to a nine-week high overnight, following Friday’s strong U.S. jobs report. That report fell squarely into the camp of the U.S. monetary policy hawks. After the report, the bond market priced in a quarter-point U.S. interest rate hike this year. That’s also bearish for the gold and silver markets. Technical selling is also featured in gold and silver futures to start the trading week, as the near-term chart postures for both metals are deteriorating. August gold was last down $14.40 at $4,351.00. July silver prices were last down $0.833 at $68.275.

In metals news, China’s central bank extended its gold-buying streak in May, adding to holdings as prices of the precious metal remained under pressure. Bullion held by the People’s Bank of China rose by 320,000 troy ounces last month, according to data released on Sunday. The latest addition extended its buying streak to 19 months, the longest since at least 2015, when the PBOC began publishing more regular updates on its gold reserves. Gold edged lower in May, marking a third consecutive monthly decline after it hit a record in late January. Persistent inflation concerns and expectations for higher-for-longer interest rates triggered by the war in the Middle East have weighed on the appeal of non-yielding assets. Global central-bank purchases have been a key pillar of support for bullion in recent years. Goldman Sachs Group Inc. said last month it expects the buying to be stepped up as geopolitical developments are likely to reinforce a push to diversify reserves.

Latest on U.S.-Iran war…

--Oil jumps as Iran and Israel exchange fire and tensions escalate

--U.S., Iran appear far from peace deal 100 days since war began

--U.S. floats steering frozen Iran assets to Gulf allies for repairs

--Asia-to-U.S. container rates spike 109% since Iran war started

--U.S. intercepts fresh Iranian attacks as peace talks stall

--Houthis to impose “complete ban” on Israeli ships in Red Sea

Trump still wants Fed interest rate cut. President Trump said over the weekend that Federal Reserve policymakers would be wrong to raise U.S. interest rates after a blowout U.S. jobs report Friday, while insisting he doesn’t want to influence Kevin Warsh before he chairs his first Fed meeting. “Nowadays when you have good reports, the market goes down because they think they’re going to raise interest rates,” Trump said in an interview with NBC’s Meet the Press that aired Sunday and as reported by Bloomberg. Raising the benchmark rate “is the wrong thing to do,” Trump said. “We should actually lower interest rates,” he said.

European Central Bank set to hike rates this week. A euro-zone interest-rate hike on Thursday is widely believed to place the European Central Bank at the vanguard of global tightening caused by the Iran war. The quarter-point increase expected for Thursday would be the most notable move so far, given that similar action in advanced economies has taken effect in much smaller jurisdictions.

Technically, August gold futures prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $4,627.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $4,162.60. First resistance is seen at the overnight high of $4,377.50 and then at $4,400.00. First support is seen at the overnight low of $4,293.00 and then at $4,250.00. Wyckoff's Market Rating: 3.0

July silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.66. First resistance is seen at $69.00 and then at $70.00. Next support is seen at the overnight low of $66.305 and then at $65.00. Wyckoff's Market Rating: 3.0