Gold and silver a bit weaker just ahead of Fed Chair Powell’s testimony

New York (Jun 22)  Gold and silver prices are modestly down in midday U.S. trading Tuesday, as the markets are on hold ahead of highly anticipated comments from the U.S. central bank chief this afternoon. August gold futures were last down $4.90 at $1,778.00 and July Comex silver was last down $0.20 at $25.82 an ounce.

The marketplace on Tuesday afternoon will closely scrutinize Federal Reserve Chairman Jerome Powell's remarks to a House committee. Powell's prepared text for today's appearance on the coronavirus pandemic, released Monday afternoon, shows him reiterating the rise in inflation is transitory. Importantly, traders and investors will be watching the 2:00 p.m. EDT appearance for his replies to lawmakers' questions. Powell is known to occasionally go "off-script" in his answers to questions.

Global stock markets were mixed overnight, with Asian shares mostly firmer and European shares mostly weaker. The U.S. stock indexes are higher at midday, with the Nasdaq stock index hitting a record high.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures are weaker and trading around $72.65 a barrel after hitting a 2.5-year high of $73.36. overnight. Brent crude traded above $75.00 overnight amid signs global demand for energy continues to increase. Reports said Russia is considering proposing OPEC and its allies increase output at the next OPEC meeting on July 1, with the world oil market presently estimated to need an additional 3 million barrels a day to satisfy demand.

The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.5%.

Technically, August gold futures bears have the overall near-term technical advantage. A three-week-old price downtrend is in place on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at $1,826.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today's high of $1,790.10 and then at $1,800.00. First support is seen at last week's low of $1,761.20 and then at $1,750.00.

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