Gold, Silver Pare Losses On Trump's Displeasure With U.S. Rate Hikes

(Kitco News) - Gold and silver prices remain modestly lower in early-afternoon U.S. trading Thursday. However, the markets have made a very good rebound from the daily lows following reports President Trump said he is “not thrilled” with rising U.S. interest rates. Both metals sunk to 12-month lows overnight. A resurgent U.S. dollar index this week, which hit a 12-month high today, continues to pressure the precious metals markets. Also, the technical postures for gold and silver are fully bearish, which is inviting new chart-based sellers. August gold futures were last down $3.00 an ounce at $1,225.10. September Comex silver was down $0.179 at $15.395 an ounce.

Trump, in a statement from the Oval Office, reportedly criticized the Federal Reserve for raising interest rates. He said he is “not thrilled” about the recent U.S. interest rate hikes and is worried the progress his administration has made on the U.S. economy could be undone by higher rates. Still, he called Fed Chairman Jerome Powell a good man for the job.

While there are no significant early chart clues gold and silver prices are near bottoms, they are presently short-term oversold, technically, and due for a corrective bounce very soon.

The U.S. hard line against its trading partners is back on the front burner of the marketplace and pressured world equity markets Thursday. President Trump has again threatened the European Union with tariffs on its automobiles. China has also fired back at the U.S. with its own bombastic rhetoric. The Chinese yuan declined to a 12-month low against the U.S. dollar today amid expectations that Chinese monetary officials will continue to let the yuan depreciate, including by easing China’s monetary policy.

The other key “outside market” today finds Nymex crude oil prices higher on short covering and trading above $69.00 a barrel. Still, recent solid losses in crude suggest this market has topped out.

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Technically, the gold bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. However, the market is now short-term oversold and due for a corrective bounce. A three-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,245.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,228.30 and then at $1,236.20. First support is seen at $1,220.00 and then at today’s low of $1,210.70 and then at $1,200.00. Wyckoff's Market Rating: 1.0

The silver bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. However, the market is short-term oversold. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $15.625 and then at this week’s high of $15.90. Next support is seen at today’s low of $15.185 and then at $15.00. Wyckoff's Market Rating: 1.0.

September N.Y. copper closed down 530 points at 270.70 cents today. Prices closed nearer the session low and hit another 12-month low today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at 275.00 cents and then at today’s high of 277.85 cents. First support is seen at today’s low of at 267.35 cents and then at 265.00 cents. Wyckoff's Market Rating: 1.0.