Gold price of power up to 6 years Strong on Easy Fed

(Kitco News) –
Gold and silver prices are significantly higher on Friday in the United States. Gold has peaked in six years, while the price of silver has peaked in 13 months. Thursday afternoon, a key official of the US Federal Reserve surprised the market with his very dovish comments on monetary policy. Gold futures in August were up $ 11.20 an ounce at 1 439.30. In September, Comex 's money prices were up $ 0.202, to $ 16.40 an ounce.

The market is still brimming with comments made Thursday afternoon by the influential chairman of the New York Federal Reserve Bank, John Williams. He suggested that the Fed should be more aggressive in its monetary policy measures to prevent a slowdown in the US economy. This has led some market observers to believe that the Fed could cut the 0.5% rate at the FOMC meeting in late July. Later, the Federal Reserve tried to "go back" in Williams' comments. St. Louis Fed President James Bullard said Friday that a drop in the US rate of 0.25% in the short term was appropriate.

Asian and European stocks generally rose overnight. US stock indexes are headed for slightly higher openings during the New York session. US indexes hit record highs and hit record highs earlier this week.

The US dollar fell on Thursday afternoon and US Treasury prices rallied as a result of Williams' claims.

The main "foreign markets" are now seeing Nymex crude oil prices firm and trade just below $ 56.00 a barrel. Oil market bulls disappeared this week as the United States and Iran could start talking about US sanctions on Iran. However, it has also been reported that the US military and the Iranian army clashed near the Strait of Hormuz, including unconfirmed reports that the United States shot down an Iranian drone. Meanwhile, the US dollar index is higher today after a rebound after the sell-off Thursday following comments by Williams.

US economic data expected Friday will be light and include the consumer survey of the University of Michigan.

On the technical side, gold bulls have a strong overall technical advantage in the short term. A seven-week uptrend is in place on the daily bar chart and prices have just seen a bullish "hike" in the recent trading range on the daily bar chart. Bulls next price target is to produce futures in August above a strong $ 1,500 resistance. Bears' next short-term downside price reduction target pushes August futures prices under solid technical support at $ 1,400.00. The first resistance is observed at today's highs, at $ 1,454.40, then at $ 1,460.00. The first support is at today's low of $ 1,436.20 then $ 1,425.00. Wyckoff's Market Rating: 8.0

Silver futures in September have a strong short-term overall technical advantage and positive momentum. The Silver Bulls' next bullish price target is a higher closing price with a strong technical resistance at $ 17.00 an ounce. The next downside price target for the bears is a close lower than solid support price at $ 15.625. The first resistance is observed at today's maximum of $ 16.50, then at $ 16.75. The next support is seen at the lowest overnight rate of $ 16.27 then $ 16.00. Wyckoff Market Estimate: 8.0.