Gold, silver steady-weaker as Powell Jackson Hole speech awaited
Gold and silver prices are steady to slightly lower in quieter midday U.S. trading Thursday, as traders are awaiting the marketplace event of the week, if not the month: the annual Federal Reserve symposium held in Jackson Hole, Wyoming. The meeting gets under way Thursday evening. This meeting usually produces some market-sensitive news from world central bankers’ comments, including Fed Chair Jerome Powell. Powell is scheduled to speak at the confab on Friday morning at 10:05 a.m. EDT. December gold was last down $0.70 at $1,947.40 and September silver was down $0.152 at $24.245.
U.S. stock indexes are lower at midday, despite Nvidia’s knockout earnings and guidance reports Wednesday afternoon. Said Nigel Green, the CEO of deVere Group: “AI (artificial intelligence) is not just the future, it’s the present, and all investors need some exposure to it – but there’s much more than just this one California-based mega tech company.” The chipmaker beat estimates and said sales will jump another 170% this quarter due to soaring demand for AI chips. Shares in Nvidia jumped 6% on the earnings and guidance, which came after the closing bell Wednesday. “Nvidia is the darling of the AI boom – of this there is no doubt – and with robust guidance we expect this to continue for most of the rest of the year,” said Green. “Investors who are serious about building their long-term wealth need exposure to this pivotal driver of innovation, competitiveness, and profitability across almost all industries. We’re still at the beginning of the AI age and investors should not miss out on having an early advantage. Almost everyone should have investment exposure to AI as part of the mix.”
The marketplace is taking note of the BRICS (Brazil, Russia, India, China and South Africa) meeting this week. China President Xi Jinping was a no-show for a scheduled speech at the confab. Broker SP Angel says in an email dispatch: “We wonder what economic disaster Xi was having to address while missing his speech.”
The key outside markets today see the U.S. dollar index solidly higher, while Nymex crude oil futures prices are slightly up and trading around $79.25 a barrel. The benchmark U.S. Treasury 10-year note is presently fetching 4.227%.
Technically, December gold futures bears still have the overall near-term technical advantage. However, a four-week-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,963.50 and then at $1,975.00. First support is seen at today’s low of $1,939.20 and then at Wednesday’s low of $1,926.20. Wyckoff's Market Rating: 3.5.
September silver futures bulls have the overall near-term technical advantage. Prices are starting to trend up. Silver bulls' next upside price objective is closing prices above solid technical resistance at the July high of $25.475. The next downside price objective for the bears is closing prices below solid support at the August low of $22.265. First resistance is seen at this week’s high of $24.43 and then at $24.75. Next support is seen at $24.00 and then at Wednesday’s low of $23.475. Wyckoff's Market Rating: 6.0.
September N.Y. copper closed down 360 points at 377.25 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. However, a downtrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 362.70 cents. First resistance is seen at this week’s high of 381.55 cents and then at 385.00 cents. First support is seen at Wednesday’s low of 375.70 cents and then at 371.60 cents. Wyckoff's Market Rating: 3.5.
By
Jim Wyckoff
For Kitco News
David