Gold and silver prices are weaker in early U.S. trading Thursday, with renewed chart-based selling from the speculators in the futures markets featured. The near-term technical postures for the gold and silver markets remain tilted in favor of the bears. August gold was last down $17.40 at $4,034.50. September silver prices were last down $0.563 at $56.90.
Heavy U.S. strikes on Iran for 5th straight day. The U.S. struck Iran for a fifth consecutive day overnight and hit a sanctioned oil tanker near the country’s main export terminal, as tensions between the warring sides show little sign of abating, said a Bloomberg report. “Iran responded to the U.S.’s barrage on military targets such as command centers and missile sites by firing upon American bases in Kuwait and Jordan. The Jordanian government said it intercepted eight missiles. Tehran seems in no mood to back down in the face of President Trump’s warning that he’ll escalate strikes until the Islamic Republic reopens the Strait of Hormuz, the waterway that’s now the focal point of the war,” said the report. “As long as the United States does not accept the Iranian legal system, this strait will remain closed,” a spokesman for Iran’s army said, according to a report from the semi-official Iranian Students’ News Agency.
Ukraine drones strike more Russian ships. Ukrainian naval drones hit two large Russia-linked oil tankers in the Black Sea as Moscow and Kyiv expand the scope of their mutual maritime strikes, according to Bloomberg. Separately, Ukraine’s General Staff in a Telegram statement said that a total of six Russia-linked oil tankers and two tug vessels were hit in the Black Sea and the Sea of Azov on Thursday, providing no names of the ships, said Bloomberg.
Fed’s beige book: U.S. economy growing modestly… U.S. economic activity increased at a slight to moderate pace in recent weeks as most regions experienced little to no change in employment levels, the Federal Reserve said in its beige book Wednesday afternoon. Prices increased moderately overall, according to the U.S. central bank’s survey of regional business contacts. “Some contacts tied these cost increases to the conflict in the Middle East; others mentioned tariffs. Consumer prices continued to rise, and a few districts said contacts saw greater price sensitivity among their customers,” the Fed said. The report was based on information collected by the Fed’s 12 regional banks through July 6 and compiled by Chicago Fed. A number of Fed officials have voiced their concerns around high inflation, warning they might need to raise interest rates this year. Still, both chairman Kevin Warsh and New York Fed president John Williams have recently expressed benign views on the inflation outlook. In the report, the outlook for inflation varied as events in the Middle East injected extra volatility into energy prices. On the labor market, the report showed that employment and wage gains were modest to moderate, though some districts saw wage increases related to competition for skilled workers.
U.S. importers rushing to secure foreign goods… U.S. importers are rushing goods into the nation’s two busiest ports, pushing up ocean transport costs during the wait for more tariffs and an extended bout of economic uncertainty stemming from the Iran war, according to a Bloomberg report. “Dockworkers at the Port of Los Angeles handled more than a million containers last month, making it the busiest June on record, according to Executive Director Gene Seroka. Long Beach posted its third-busiest June on record, moving more than 779,000 TEUs, a 10.6% increase over the same month last year. Imports rose 11% to more than 387,000 containers, exports fell 1% to about 86,000 TEUs. The number of empty containers climbed 14% to nearly 306,000, according to port data.
Technically, August gold futures are weaker in early U.S. trading. Prices are trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the July 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 the overnight high of $4,071.90 and then at this week’s high of $4,112.50. First support is seen at this week’s low of $3,990.40 and then at the June low of $3,955.40. Wyckoff's Market Rating: 2.0
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 $60.00 and then at $61.195. Next support is seen at the June low of $56.13 and then at $55.00. Wyckoff's Market Rating: 2.0
