(Kitco News) - Gold prices are weaker in midday U.S. trading Wednesday. Risk appetite up-ticked a bit today on reports the U.S. government debt-limit-extensions talks are set to resume, following a report Tuesday that the negotiations were at an impasse. Silver prices are lower. Trading today is more cautious ahead of this afternoon's release of the FOMC minutes. June gold was last down $2.50 at $1,972.10 and July silver was down $0.274 at $23.34.
Risk aversion was keener earlier today after a report Tuesday afternoon said President Biden and House Speaker McCarthy have not made much progress on the U.S. debt-ceiling extension discussions. However, Democrats and Republicans said they are resuming talks today, suggesting the situation is not dire yet.
In a rare development, traders and investors are shunning shorter-term U.S. Treasury bills (less than one-year maturities) over fears of a U.S. government default on that debt. This has caused high-grade U.S. corporate bonds to trade at a yield discount to U.S. Treasury bills. U.S. Treasury debt up to now had been considered the safest investment in the world.
Asian and European stock markets were mostly lower overnight. U.S. stock indexes are lower at midday.
Traders and investors will closely scrutinize this afternoon's release of the minutes from the last FOMC meeting of the Federal Reserve. The minutes may shed further light on the Fed's monetary policy going forward. Most think the Fed at the June FOMC meeting will pause on its interest rate tightening cycle. Some have termed any Fed pause as a “hawkish pause."
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The key outside markets today see the U.S. dollar index higher and hitting another two-month high today. Nymex crude oil prices are higher and trading around $74.25 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.7%.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, June gold futures bulls have the 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 $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at today's high of $1,987.90 and then at $2,000.00. First support is seen at the May low of $1,954.40 and then at $1,950.00. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
July silver futures prices were poised to close at a seven-week low close today. The silver bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at today's high of $23.655 and then at $24.00. Next support is seen at this week's low of $23.235 and then at $23.00. Wyckoff's Market Rating: 4.0.
July N.Y. copper closed down 1,055 points at 354.90 cents today. Prices closed near the session low today and hit a six-month low. The copper bears have the firm overall near-term technical advantage. Prices are in a steep five-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 380.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 335.00 cents. First resistance is seen at 360.00 cents and then at today's high of 364.55 cents. First support is seen at today's low of 354.50 cents and then at 350.00 cents. Wyckoff's Market Rating: 3.0.
