Gold and silver are feeling pressure from hawkish central banks

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(Kitco News) – Gold and silver prices are slightly lower Tuesday at noon in the United States. The hawkish monetary policies of the US Federal Reserve and other major central banks around the world have clouded equity and financial markets at present, but have pushed up US Treasury yields and the US dollar index, which are both assets in competition with the vault. -haven metals. October gold was last down $4.70 at $1,662.90 and December silver was down $0.148 at $19.205.

Risk aversion remains high among traders and investors at the start of the week. The market is focused on the Federal Reserve’s FOMC meeting which begins Tuesday morning and ends Wednesday afternoon with a statement and press conference by Fed Chairman Jerome Powell. The FOMC is expected to remain aggressive and raise the US federal funds rate by 0.75% as part of the Fed’s efforts to curb problematic price inflation. The Central Bank of Sweden today raised its policy 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 European stocks mostly down and Asian stocks mostly up. US stock indices are down at midday.

Major outside markets are seeing Nymex Crude Oil prices drop today and trading around $82.00 a barrel. The US Dollar Index is higher at midday in the United States. The yield on the 10-year US Treasury hits 3.575% and climbs.

24 hour live gold chart [Kitco Inc.]

Technically, October gold futures prices are near last week’s nearly 2.5-year low. Bearish gold futures have the strong overall short-term technical advantage. The Bulls’ next upside price objective is to produce a close above the strong resistance at $1,700.00. Bears next short-term downside price objective is to push futures prices below strong technical support at $1,600.00. First resistance is seen at today’s high of $1,678.00 and then at $1,686.30. The first support is seen at the September low of $1,651.90 and then at $1,635.00. Wyckoff Market Rating: 1.0.

24 hour live money chart [ Kitco Inc. ]

December silver futures have the overall short-term technical advantage. The next upside price objective for the silver bulls is to close prices above the strong technical resistance at $21.00. The next downside price objective for the bears is to close prices below the strong support at $18.00. First resistance is seen at this week’s high at $19.69 and then at $20.00. The next support is seen at $19.00 and then at last week’s low at $18.77. Wyckoff Market Rating: 2.5.

December NY Copper closed down 70 points at 350.55 cents today. Prices closed closer to the session low today. Copper bears have the overall short-term technical advantage. The next upside price objective for the copper bulls is to push and close prices above strong technical resistance at the August high of 378.35 cents. The next downside price target for the bears is for prices to close below strong technical support at the July low of 315.55 cents. First resistance is seen at this week’s high at 355.80 cents, then at 360.00 cents. First support is seen at last week’s low of the September low of 354.40 cents and then at 350.00 cents. Wyckoff Market Rating: 3.0.

Disclaimer: The opinions 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 the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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