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Gold, silver down in volatile, 2-sided trading day

Senior Technical Analyst Jim Wyckoff prepares investors with an overview of how the markets opened and closed. What moved metal prices? How do the technicals look? By looking at important developments

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(Kitco News)Â – Gold and silver prices are trading solidly lower at midday Thursday, in a wild trading day that saw gold prices trade over $30 higher at one point, and down over $25 at another. Federal Reserve Chairman Jerome Powell’s highly anticipated speech today was deemed bullish, but metals traders quickly discounted it, instead focusing on the metals-bearish aspects of rising U.S. Treasury bond yields as a competing asset. October gold futures were last down $25.90 an ounce at $1,918.20. September Comex silver prices were last down $0.499 at $26.94 an ounce.

Focus of the marketplace today was on Powell’s speech on the U.S. economy, as part of the annual Jackson Hole meeting that is this year virtual. His speech focused on the Fed changing its monetary policy course and becoming much less concerned about inflation even if it briefly rises above the Fed’s annual 2% target. The upshot is that it will likely be a very long time before the Federal Reserve raises interest rates. Not overlooked by the Fed is the fact that massive U.S. deficit spending the past few months can be better rectified by higher inflation and a depreciating U.S. dollar.

For gold and silver traders, it could also be a classic case of “buy the rumor and sell the fact” for Powell’s speech on inflation today. Rallying prices in metals and many raw commodity markets recently appeared to already be sensing inflation, and maybe even problematic inflation, could be in store in the coming months, following the massive infusion of central bank liquidity into the global financial system in recent months, to stimulate economies crippled by Covid-19 lockdowns.

Global stock markets were mixed overnight. The U.S. stock indexes are mixed in midday trading. After the S&P 500 and Nasdaq stock indexes hit record highs this week, U.S. traders and investors are now a bit more risk averse late this week, as racial tensions in America are on the rise again. Several professional sports teams opted not to play their games Wednesday, following police shooting an African American man in Wisconsin. Also,…

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