On Tuesday, gold and silver prices are lower in midday U.S. trading session. Following weakened import and export figures by China, the two precious metals were much pressured. Today’s metals were also pulled down by a rise in the U.S. dollar index and lower crude oil prices. December gold was last down $9.60 at $1,960.50 …
On Tuesday, gold and silver prices are lower in midday U.S. trading session. Following weakened import and export figures by China, the two precious metals were much pressured. Today’s metals were also pulled down by a rise in the U.S. dollar index and lower crude oil prices. December gold was last down $9.60 at $1,960.50 and September silver was down $0.437 at $22.79.
Followed by reports that China received further bleak economic data on Tuesday, risk appetite fell as the world’s second largest economy saw its exports fall by 14.5% YoY in July, also considered the sharpest loss since the Covid period which took place in February of 2020. Imports plummeted 12.4% in July, more than predicted. These poor results will almost certainly necessitate more Chinese central bank stimulus measures in the near future.
On the China news, Asian and European stock markets were mainly weaker in overnight trading. By midday, U.S. stock indexes are lower. The market will also be watching key inflation statistics from the U.S. and China this week. The July consumer price index for the U.S. will be released on Thursday, followed by the producer price index on Friday. Both CPI and PPI are likely to rise slightly from June’s figures.
In technical terms, December gold futures bears have the upper hand in near term. Based on daily bar chart, prices are in the early stages of a downward trend. The bulls’ next price target is to close over firm resistance at $2,000.00. The bears’ next short-term price target is to knock futures prices below sturdy technical support at the June low of $1,939.20. The first point of resistance is today’s high of $1,972.80, followed by this week’s high of $1,981.70. The first level of support is anticipated at last week’s low of $1,954.50, followed by $1,950.00.
As for silver, September silver futures prices fell to a four-week low. In short run, the silver sellers have the overall technical up-hand. Based on the daily bar chart, prices are in the early stages of a downward trend. The next price target for silver bulls is to close over sturdy technical resistance at $25.00. The bears’ next price objective is to close below sturdy support at the June low of $22.34. The first point of resistance is today’s high of $23.255, followed by this week’s high of $23.775. The next level of support is expected at today’s low of $22.72, followed by $22.50.
Risk disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
