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

(Kitco News) - Gold and silver prices remainmodestly lower in early-afternoon U.S. trading Thursday. However, the marketshave made a very good rebound from the daily lows following reports PresidentTrump said he is “not thrilled” with rising U.S. interest rates. Both metalssunk to 12-month lows overnight. A resurgent U.S. dollar index this week, whichhit a 12-month high today, continues to pressure the precious metals markets.Also, the technical postures for gold and silver are fully bearish, which isinviting new chart-based sellers. Augustgold futures were last down $3.00 anounce 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 Reservefor 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 onthe U.S. economy could be undone by higher rates. Still, he called Fed ChairmanJerome Powell a good man for the job.

Whilethere are no significant early chart clues gold and silver prices are nearbottoms, they are presently short-term oversold, technically, and due for acorrective bounce very soon.

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

Theother key “outside market” today finds Nymex crude oil prices higher on shortcovering and trading above $69.00 a barrel. Still, recent solid losses in crudesuggest this market has topped out.

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Technically,the gold bears have the solid overall near-term technical advantage. There areno early clues to suggest a market bottom is close at hand. However, the marketis now short-term oversold and due for a corrective bounce. A three-month-olddowntrend is in place on the daily bar chart. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat this week’s high of $1,245.80. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,200.00. Firstresistance is seen at today’s high of $1,228.30 and then at $1,236.20. Firstsupport 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

Thesilver bears have the solid overall near-term technical advantage. There are noearly clues to suggest a market bottom is close at hand. However, the market isshort-term oversold. Silver bulls' next upside price breakout objective isclosing prices above solid technical resistance at $16.00 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at $15.00. First resistance is seen at $15.625 and then at this week’shigh 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.

SeptemberN.Y. copper closed down 530 points at 270.70 cents today. Prices closed nearerthe session low and hit another 12-month low today. The copper bears have thesolid overall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at290.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 260.00 cents. First resistance is seen at275.00 cents and then at today’s high of 277.85 cents. First support is seen attoday’s low of at 267.35 cents and then at 265.00 cents. Wyckoff's MarketRating: 1.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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