Price Declines In Gold, Silver Amid Bearish Outside Markets, Demand Worries

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Gold and silver prices are a lower in early U.S. trading Thursday, with gold dropping to a six-week low and silver a two-year low. The precious metals are in retreat amid a higher U.S. dollar index and lower crude oil prices today. Economic recession fears and the resulting reduced consumer demand for the metals are also weighing on prices recently. August gold futures were last down $11.50 at $1,805.90. Gold prices are near key chart support levels ($1,800.00 and $1,792.00) that if breached are likely to set off heavy sell stop orders in the futures market. July Comex silver futures were last down $0.358 at $20.325 an ounce.

Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins, on this last trading day of the month and of the first half of 2022. Reports said the S&P 500 is set to close out its worst half-year since the 1970s. Trader and investor risk appetite has receded late this week, following downbeat consumer confidence and GDP readings out of the U.S. this week. Fed Chairman Powell and ECB President Lagarde on Wednesday repeated warnings that their central banks will keep raising interest rates even if their economies slowed down. Recently, much of the marketplace has deemed economic recessions potential as superseding inflation worries, when placing their trades.

In overnight news, Sweden’s central bank raised its key interest rate by 0.5%, to 0.75%.

The U.S. data point of the day is the personal income and outlays report for May. The personal consumption expenditures price index component of the report is said to be the Federal Reserve’s favorite inflation gauge. In the April report, the PCE price index was reported up 6.3%, year-on-year.

The key outside markets today see Nymex crude oil prices slightly lower and trading around $109.50 a barrel. The U.S. dollar index is firmer in early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching 3.057%.

U.S. economic data due for release Thursday includes the weekly jobless claims report, personal income and outlays, and the ISM Chicago business survey.

Technically, the August gold futures bears have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the June high of $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,792.00. First resistance is seen at today’s high of $1,822.90 and then at Wednesday’s high of $1,834.90. First support is seen at $1,800.00 and then at $1,792.00. Wyckoff’s Market Rating: 3.0.

July silver futures bears have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of $21.535 an ounce. The next downside price objective for the bears is closing prices below solid support at $20.00. First resistance is seen at…

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