(Kitco News) – Gold and silver prices are lower in the United States at noon on Tuesday, following startling remarks by US Treasury Secretary and former Federal Reserve Chairman Janet Yellen, who said US interest rates may have to rise. Gold and silver prices hit nine-week highs early in today’s session. A rebound in the US dollar index is also on the downside for precious metals on this day. June gold futures fell last from $ 15.50 to $ 1,776.30 and July ExCom silver last fell from $ 0.53 to 26.41 $ per ounce.
Speaking in a webinar hosted by The Atlantic, Yellen warned that interest rates may have to rise to keep the US economy from overheating. “Interest rates may need to increase somewhat to ensure our economy does not overheat, even though the additional spending is relatively small relative to the size of the economy,” she said. in the presentation, catching the market by surprise. What is surprising is that Yellen’s comments seem to contrast with recent statements by current Fed Chairman Jerome Powell that US interest rates are unlikely to rise anytime soon. While Yellen’s remarks today were surprising to most, they seem logical to many seasoned market watchers, including this one, who have been advocating for some time that there are too many ‘irons in the fire’. »Easy to use so as not to overheat The US economy and the prospect of problematic price inflation. The prices of many raw commodities have peaked for several years as lumber prices have skyrocketed to record highs. The rising trajectory of U.S. government bond yields has also sparked speculation that inflation could get hotter than central banks and governments wish.
Global stock markets were mostly stable overnight. US stock indices are lower at noon. With no major geopolitical fires right now and Covid-19 mostly under control in most major economies, traders and investors have mostly focused on upbeat quarterly reports on corporate earnings and policies. monetary policy of the main central banks of the world. These are bullish elements for the stock markets. However, Yellen’s hawkish comments on Tuesday could kick-start the equity bull market, at least for a while.
In overnight news, Australia’s central bank left its monetary policy unchanged at its regular meeting on Tuesday. The Royal Bank of Australia has said it does not expect any interest rate hikes until at least 2024. The RBA has not described inflation as becoming problematic.
Major foreign markets now see the US dollar index higher. Nymex crude oil prices are higher, peaked in six weeks, and are trading around $ 65.60 per barrel. Meanwhile, the yield on the benchmark 10-year US Treasury bill is currently 1.62%. As a perspective, the German 10-year bund is down -0.192% and the UK gilt is at 0.837%.
Technically, the June gold futures bulls have the slight overall short-term technical advantage, as a four-week bullish trend on the daily bar chart has been reignited. The bulls next bullish price target is to produce a close above the solid resistance at $ 1,800.00. The next short-term price drop target for the Bears is to push futures prices under strong technical support at $ 1,750.00. The first resistance is seen at $ 1790.00 and then at $ 1800.00. First support is seen at this week’s low of $ 1,765.60, followed by last week’s low of $ 1,754.60. Wyckoff Market Rating: 5.5
July silver futures bulls have the overall short-term technical advantage. A five week uptrend on the daily bar chart has been restarted. The next bullish price target for Silver Bulls is to close prices above strong technical resistance at $ 28.00 an ounce. The next lower price target for the bears is to close prices below solid support at last week’s low of $ 25.745. The first resistance is seen at $ 26.765 and then at $ 27.00. Next support is seen at $ 26.00 and then this week’s low of $ 25.85. Wyckoff Market Rating: 6.0.
July NY copper closed 40 points higher at 453.30 cents today. Prices closed closer to the high of today’s session and closed at a contract and nearly 10 year close. Copper bulls have the strong overall technical advantage in the short term. The next bullish price target for copper bulls is to push and close the price above the strong technical resistance at 460.00 cents. The next lower price target for the bears is to close the price below strong technical support at 420.00 cents. First resistance is seen at the contract high of 455.10 cents and then at 460.00 cents. First support is seen at this week’s low of 443.50 and then 440.00 cents. Wyckoff Market Rating: 9.0.
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