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Silver, gold prices continue to suffer from US dollar’s strength

Gold and silver prices are lower again and hit three-week lows in early U.S. trading.

Updated : Aug 23, 2022, 02:24 PM IST | Edited by : Maitry Kothari

Silver, gold prices continue to suffer from US dollar’s strength

Early on Monday in American trading, gold and silver prices fell once further and reached three-week lows. The strong U.S. dollar index, which overnight reached a five-week high and is back close to its 20-year peak set in July, is holding the supporters of the precious metals market in check. At $1,732.40, October gold futures were last down $20.70. Comex silver futures for September were last trading down $0.369 at $18.69 per ounce.

Overnight, most stock markets throughout the world fell. When the New York day session starts, U.S. market indexes are pointing toward sharply lower openings. In the face of what is regarded as a still-aggressive Federal Reserve that is hell-bent on decreasing inflation even if it produces a U.S. economic recession, traders and investors are worried and a little bit risk cautious. The late-week Jackson Hole, Wyoming Federal Reserve annual symposium, which will feature a lecture from Fed Chairman Jerome Powell on Friday morning, is eagerly expected by the market. The American central bank has released key monetary policy pronouncements following previous Jackson Hole Fed meetings.

U.S. economic data due for release Monday includes the Chicago Fed national activity index.

The gold futures for October In the immediate term, bears have a clear technical advantage. The next price goal for the bulls is to close above the strong resistance level of $1,800.00. The next short-term downside price target for bears is to drive futures prices below strong technical resistance at $1,700.00. The first point of resistance is $1,750.00, followed by Friday's high of $1,762.70. The first level of support is at $1,717.00, followed by $1,700.00. 2.5 Wyckoff's Market Rating.

September futures for silver In the immediate term, bears have a clear technical advantage. The next upward price target for silver bulls is a close over $20.00, a level of strong technical resistance. The bears' next downside price target is for prices to close below strong support at the low price of $18.01 from July. The overnight high of $19.065 is the first point of resistance, followed by $19.48. The next level of support is at $18.50, followed by $18.00. 2.0 is Wyckoff's Market Rating.

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