(Kitco News) – Gold and silver prices are decrease in noon U.S. buying and selling Tuesday, following shocking remarks coming from the U.S. Treasury Secretary and former Federal Reserve Chair Janet Yellen, who mentioned U.S. rates of interest might must rise. Gold and silver costs had poked to nine-week highs in early buying and selling in the present day. Additionally bearish for the dear metals on at the present time is a rebound within the U.S. greenback index. June gold futures were last down $15.50 at $1,776.30 and July Comex silver was last down $0.53 at $26.41 an ounce.
Speaking in a webinar hosted by The Atlantic, Yellen warned that interest rates might have to rise to stop the U.S. economy from overheating. “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” she said in the presentation, catching the marketplace by surprise. What is surprising is that Yellen’s comments seem to contrast with present Fed Chairman Jerome Powell’s recent statements that U.S. interest rates are not likely to rise any time soon. While Yellen’s remarks today were surprising to most, they seem logical to many veteran market watchers, including this one, who have advocated for quite some time that there have been too many easy-money “irons put in the fire” to not create an overheating U.S. economy and the prospect of problematic price inflation. Many raw commodity prices are at multi-year highs, with lumber prices skyrocketing to record highs. The trajectory of rising U.S. government bond yields has also prompted speculation of inflation that could become hotter than central banks and governments want to see.
Global stock markets were mostly flat overnight. U.S. stock indexes are lower at midday. With no major geopolitical fires burning at present and Covid-19 mostly tamped down in most major economies, focus of traders and investors had been mostly upbeat quarterly corporate earnings reports and the still-easy monetary policies of the major central banks of the world. Those are bullish elements for the equities markets. However, Yellen’s hawkish comments Tuesday could throw a monkey-wrench into the bull market run in equities—at least for a while.
In overnight news, Australia’s central bank left its monetary policy unchanged at its regular meeting Tuesday. The Royal Bank of Australia said it expects no rise in its interest rates until at least 2024. The RBA did not portray inflation as becoming problematic.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are higher, hit a six-week high, and are trading around $65.60 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.62%. For perspective, the German 10-year bund is yielding -0.192% and the U.K. gilt is at 0.837%.
Technically, June gold futures bulls have the slight total near-term technical benefit as a four-week-old uptrend on the day by day bar chart has been restarted. Bulls’ subsequent upside worth goal is to provide an in depth above strong resistance at $1,800.00. Bears’ subsequent near-term draw back worth goal is pushing futures costs beneath strong technical help at $1,750.00. First resistance is seen at $1,790.00 after which at $1,800.00. First help is seen at this week’s low of $1,765.60 after which ultimately week’s low of $1,754.60. Wyckoff’s Market Ranking: 5.5
July silver futures bulls have the general near-term technical benefit. A five-week-old uptrend on the day by day bar chart has been restarted. Silver bulls’ subsequent upside worth goal is closing costs above strong technical resistance at $28.00 an oz. The following draw back worth goal for the bears is closing costs beneath strong help ultimately week’s low of $25.745. First resistance is seen at $26.765 after which at $27.00. Subsequent help is seen at $26.00 after which at this week’s low of $25.85. Wyckoff’s Market Ranking: 6.0.
July N.Y. copper closed up 40 factors at 453.30 cents in the present day. Costs closed nearer the session excessive in the present day and closed at a contract and practically 10-year excessive shut. The copper bulls have the sturdy total near-term technical benefit. Copper bulls’ subsequent upside worth goal is pushing and shutting costs above strong technical resistance at 460.00 cents. The following draw back worth goal for the bears is closing costs beneath strong technical help at 420.00 cents. First resistance is seen on the contract excessive of 455.10 cents after which at 460.00 cents. First help is seen at this week’s low of 443.50 after which at 440.00 cents. Wyckoff’s Market Ranking: 9.0.
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