Senior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments
- Gold and silver prices are not straying too far from unchanged levels in quieter U.S. trading Wednesday. Traders are awaiting this afternoon’s release of the minutes from the last meeting of the Federal Reserve’s Open Market Committee . Both markets hit five-month lows Tuesday. December gold was last down $0.50 at $1,934.60 and September silver was down $0.01 at $22.64.
Goldman Sachs economists are forecasting the Fed will hold steady on its monetary policy until the second quarter of 2024, when at that time they expect the Fed to make an interest rate cut. This scenario bodes well for increased global economic growth and for higher raw commodity prices due to better demand. A stronger U.S. retail sales report issued this week did throw a bit of cold water on this group’s notions of a halt in Fed rate hikes.
Focus is also on China’s economy. In China, the new property prices decline accelerated in July, highlighting ongoing challenges in one of the top sectors of the world’s second-largest economy. Also, Zhongrong International Trust has at least 30 products that are now overdue and Zhongrong also halted redemptions on some short-term instruments, according to Bloomberg.
Technically, December gold futures prices hit a five-month low Tuesday. Bears have the firm overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at $1,963.50.
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