Gold and silver are falling after the upbeat US economic data

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(Kitco News) – Gold and silver prices fell sharply in midday US trading on Thursday, with gold hitting a nine-week low and silver a two-month low, on the heels of better-than-expected US economic data that is in the camp of US monetary policy hawks. . A rally in the US Dollar Index and a rise in US Treasury yields are bearish factors outside the market that work against the precious metals. Gold for June was last down $20.90 at $1,944.10, and silver in July was down $0.325 at $22.92.

The second estimate of US first-quarter GDP came in better than expected, rising 1.3% against expectations of 1.1% and compares to the first reading of GDP at a rise of 1.1%. The weekly jobless claims in the US also came in much lower than market expectations.

Asian and European stock markets were mixed overnight. US stock indices are diverging to stronger at midday. The Nasdaq rose after Nvidia handily beat earnings estimates in its quarterly report and rose in value by 25%.

The market remains concerned as US lawmakers and the Biden administration failed to reach an agreement to extend the government debt limit. However, Speaker McCarthy said today that negotiators are making progress on the matter. Reuters also reported that Democrats and Republicans are close to reaching an agreement. This is also likely to add some selling pressure to the safe-haven gold and silver markets. US Treasury Secretary Yellen said the government could run out of money by June 1.

It was reported that the credit rating agency Fitch is watching the United States for a possible downgrade of the credit rating. “Fitch still expects a solution to the debt limit before the tenth deadline (June 1),” the credit agency said in a report. Both Fitch and Moody’s currently rate the US debt at AAA and Aaa, respectively, while S&P rated it at AA+ after a downgrade in 2011 amid debt ceiling negotiations during that time.

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Today, major overseas markets see the US Dollar Index rally and reach another two-month high overnight. NYMEX Crude Oil prices are down strongly and are trading around $71.50 a barrel. Meanwhile, the benchmark 10-year US Treasury yield is currently at 3.784%.

Technically, gold futures prices for June hit a nine-week low today. The bulls have the overall technical advantage in the near term but it is fading. Prices have been in a downtrend for three weeks on the daily bar chart. The next bullish price target for the bulls is to produce a close above the solid resistance at $2000.00. The bears’ next bearish price target in the near term is pushing futures prices below the strong technical support level at $1,900.00. We notice the first resistance at $1,965.40 of the day’s high and then this week’s high of $1,987.90. The first support is seen at today’s low at $1,939.20 and then at $1,925.00. Wyckoff Market Rating: 6.0

Silver futures prices for the month of July today hit a two-month low. The Silver Bears have the overall technical advantage in the near term. Prices have been in a sharp downtrend for the past three weeks on the daily bar chart. The next bullish price target for silver bulls is for prices to close above the strong technical resistance at $24.50. The next downtrend price target for the bears is to close the price below the strong support level at $22.00. We notice the first resistance at $23.26 today’s high and then $23.655 Wednesday’s high. The next support appears at $22.75 and then $22.50. Wyckoff Market Rating: 3.5.

New York copper closed in July down 250 points at 358.65 cents today. Prices closed near the middle of the range today and were briefly covered after hitting a six-month low on Wednesday. The copper bears have a strong overall technical advantage in the near term. Prices have been in a sharp downtrend for the past five weeks on the daily bar chart. The next bullish price target for copper bulls is to push prices and close above the solid technical resistance at 380.00 cents. The next downside price target for bears is to close prices below the strong technical support at 335.00 cents. We notice the first resistance at Wednesday’s high at 364.55 cents, then at 370.00 cents. The first support appears at this week’s low at 354.50 cents, then at 350.00 cents. Wyckoff Market Rating: 3.0.