Gold and silver see corrective price bounces at mid-week

New York (Jun 23)  Gold and silver prices are moderately up in early U.S. trading Wednesday as the metals are seeing corrective rebounds from recent strong selling pressure. Bulls are working to stabilize the markets but have more work to do to suggest such. Bearish pennant patterns appear to be forming on the daily charts for both gold and silver. August gold futures were last up $8.40 at $1,785.70 and July Comex silver was last up $0.188 at $26.055 an ounce.

Global stock markets were flat to narrowly mixed overnight. The U.S. stock indexes are pointed toward higher openings when the New York day session begins and are at or near their record highs. The marketplace at mid-week appears to be assuaged by comments made to U.S. lawmakers by Federal Reserve Chairman Jerome Powell this week that higher inflation is only transitory and that the Fed will not put the brakes on its easy money policies too soon.

In overnight news, the Euro zone’s composite purchasing managers index (PMI) flash number came in at 59.2 in June versus 57.1 in May, and also beat market expectations. The June composite PMI was the best number in 15 years. A reading above 50.0 suggests growth in the sector.

The key outside markets today see the U.S. dollar index slightly down. Nymex crude oil futures are higher and trading around $73.30 a barrel after hitting a 2.5-year high of $73.58. overnight. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.475%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. flash manufacturing and services PMIs, new residential sales, and the weekly DOE liquid energy stocks report.

KitcoNews