Gold and silver feel pressure from hawkish central banks

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(Kitco News) – Gold and silver prices fell slightly at midday on Tuesday in the United States. Tight monetary policies from the US Federal Reserve and the world’s other major central banks have cast a shadow over stock and financial markets for the time being, but boosted US Treasury yields and the US dollar index – both of which are competing with safe-haven assets. curl metals. October gold last fell $4.70 to $1,662.90, and December silver fell $0.148 at $19,205.

Risk aversion remains high among traders and investors early this week. Market focus is on the Federal Reserve’s FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chair Jerome Powell. The Federal Open Market Committee is expected to remain aggressively hawkish and raise the key US federal funds rate by 0.75% in the Fed’s attempt to curb problematic price inflation. Today, Sweden’s Riksbank raised its key interest rate by a full 1.0%. The Bank of England is also holding its monetary policy meeting on Thursday and is also expected to raise interest rates.

Global stock markets were mixed overnight, with most European stocks falling and Asian stocks mostly higher. US stock indices are lower at midday.

Today the major offshore markets are seeing a drop in NYMEX Crude Oil prices and are trading around $82.00 per barrel. The US dollar index rose at midday in US trading. The yield on the 10-year US Treasury brings 3.575% and goes up.

Technically, October gold futures prices are hovering near a 2.5-year low last week. Gold futures bears have a strong overall technical advantage in the near term. The next bullish price target for the bulls is to produce a close above the solid resistance at $1700.00. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,600.00. We notice first resistance at the day’s high at $1,678.00 and then at $1,686.30. The first support is seen at the September low at $1,651.90 and then at $1,635.00. Wyckoff Market Rating: 1.0.

24 hour silver chart [ Kitco Inc. ]

The December silver futures bears have a strong overall technical advantage in the near term. The next bullish price target for the silver bulls is to close prices above the strong technical resistance at $21.00. The next target for the bears downtrend price is a price close below the strong support level at $18.00. We notice the first resistance at this week’s high at $19.69 then $20.00. The next support is seen at $19.00 and then last week’s low at $18.77. Wyckoff Market Rating: 2.5.

Copper in New York in December closed 70 points down at 350.55 cents today. Prices closed near the session low today. Copper bears have the overall technical advantage in the near term. Copper bulls’ next bullish price target is to push and close prices above strong technical resistance at the August high of 378.35 cents. The bears’ downtrend price next target is a price close below strong technical support at the July low of 315.55 cents. We notice the first resistance at this week’s high at 355.80 cents, then 360.00 cents. First support is seen at last week’s low of 354.40 cents then 350.00 cents. Wyckoff Market Rating: 3.0.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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