Gold prices are firmer in early U.S. trading Monday as position evening is featured early this week ahead of a major central bank event later in the week. December gold was last up $11.20 at $3,393.80. September silver prices were up $0.195 at $38.165.
The Kansas City Federal Reserve’s annual Economic Policy Symposium begins Thursday evening in Jackson Hole, Wyoming, where Fed Chairman Jerome Powell is expected to unveil the Fed’s new policy framework. Powell’s speech could give the marketplace a new update on how much support there is to lower U.S. interest rates in September. Fed officials have become divided on when to resume rate cuts.
Asian and European stock markets were mixed overnight. U.S. stock indexes are set to open slightly lower when the New York day session begins, on mild profit taking after last week hitting record highs.
In overnight news, Ukrainian President Volodymyr Zelenskiy and his European allies are set to meet with President Trump in Washington, D.C. today. They are anxious to find out what Trump committed to at his summit with Russian President Vladimir Putin last Friday “and are apprehensive that he’ll force Kyiv into making unpalatable concessions,” reported Bloomberg. Trump will host Zelenskiy and several European leaders to set out terms for a potential peace deal, with the U.S. expected to focus on territorial concessions demanded by Russia, and Kyiv seeking to pin down possible security guarantees. Trump told leaders he’s open to U.S. involvement in guarantees for Ukraine’s security and wants to reach a deal quickly, with the goal of holding a Putin-Zelenskiy meeting within a week, a timeline that many Europeans regard as too aggressive.
The People’s Bank of China says it’s holding back from aggressively easing its monetary policy with moves such as interest-rate cuts, even though the economy in July posted its worst month so far this year. China’s central bank pledged to “thoroughly” enact its “moderately loose” monetary policy while highlighting targeted support to the economy. The remarks were in a quarterly report published late Friday and followed disappointing July statistics that showed evidence of weakening domestic demand.
Discussions on a proposed U.S.-India trade deal have been delayed after a planned visit by U.S. negotiators to New Delhi on August 25–29 was called off, according to Reuters. The move dashed hopes of easing new U.S. tariffs on Indian goods set to take effect August 27. The U.S. embassy reportedly said it had no further details, noting that talks are led by the U.S. Trade Representative. Earlier this month, President Trump imposed an extra 25% tariff on Indian goods over New Delhi’s continued imports of Russian crude oil, pushing some duties to as high as 50%—among the steepest on any U.S. partner.
The key outside markets today see the U.S. dollar index slightly up, with crude oil prices slightly up and trading around $63.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.29%.
Technically, December gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,500.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the July low of $3,319.20. First resistance is seen at the overnight high of $3,403.60 and then at $3,423.80. First support is seen at the overnight low of $3,368.00 and then at $3,350.00. Wyckoff’s Market Rating: 7.0.
September silver futures bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the July high of $39.91. The next downside price objective for the bears is closing prices below solid support at the July low of $36.28. First resistance is seen at $33.50 and then at $38.875. Next support is seen at last week’s low of $37.515 and then at $37.00.
Source: Kitco
