U.S.-Iran peace talks continue despite clashes. Talks between the U.S. and Iran over a permanent peace deal are continuing, according to an American official and as reported by Bloomberg, despite clashes that threatened to shatter an already fragile ceasefire. The U.S. is still committed to finding a diplomatic solution with Iran, with ongoing discussions described as technical talks, aiming to agree a permanent peace by around mid-August, said the Bloomberg report. The U.S. and Iran are trying to resolve issues including Iran’s nuclear program, with the U.S. seeking a moratorium on Iran enriching uranium and the relinquishment of existing stocks of near-bomb-grade uranium. Maritime traffic through the Strait of Hormuz has fallen this week and crude oil prices have risen.
Fed’s Warsh names panel to examine U.S. monetary policies. Federal Reserve Chairman Kevin Warsh on Thursday announced the leadership of five task forces to examine the U.S. central bank's approach to key aspects of policy making. The task forces will look at the Fed's communications strategy, balance sheet, use and reliance on existing data sources, productivity and jobs, and inflation frameworks. The leaders of the task forces include prominent academics, former central bankers, and corporate executives who will share their conclusions by year-end, supported by Fed staff. Warsh tapped several former policymakers for the task forces, including former Bank of England Governor Mervyn King and former Brazil central bank President Arminio Fraga. Raghuram Rajan, former governor of the Reserve Bank of India, will also co-lead one of the groups. Other names include Karen Dynan of Harvard University and former Walmart Inc. Chief Executive Doug McMillon.
China’s central bank lets yuan appreciate. The yuan advanced after China’s central bank signaled its comfort with the currency’s strength by setting the daily reference rate below 6.80 per dollar for the first time since 2023, Bloomberg reported. The offshore yuan gained as much as 0.3% to 6.7785 per U.S. dollar, its biggest jump in nearly a month. That’s after the People’s Bank of China set the so-called fixing for the yuan at 6.7989 per dollar. The fixing limits the onshore yuan’s move by 2% on either side. The 6.80 level is viewed by some market participants as an important reference point for the yuan’s fixing. A level stronger than this threshold suggests that policymakers are comfortable with the currency’s rising momentum. The yuan gains also came alongside other Asian currencies as the dollar broadly weakened.
The key outside markets today see the U.S. dollar index slightly down. August Nymex WTI crude oil prices are slightly lower and trading around $72.00 a barrel. The yield on the benchmark 10-year U.S. Treasury yield is presently 4.53%.
Technically, August gold futures prices are still trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at this week’s high of $4,238.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $3,955.40. First resistance is seen at Thursday’s high of $4,148.40 and then at Tuesday’s high of $4,192.40. First support is seen at Thursday’s low of $4,063.40 and then at this week’s low of $4,032.50. Wyckoff's Market Rating: 2.5
September silver futures are lower early today. The next upside price objective for the bulls is closing prices above solid technical resistance at $65.00. The next downside price objective for the bears is closing prices below solid support at $50.00. First resistance is seen at Wednesday’s high of $61.455 and then at this week’s high of $63.73. Next support is seen at this week’s low of $57.605 and then at the June low of $56.13. Wyckoff's Market Rating: 2.0
