Gold Gains As Trump Criticizes Federal Reserve

(Kitco News) - Gold prices are moderately up in early U.S. trading Tuesday and poked back above$1,200.00, as the U.S. dollar is under some pressure after President Trumpagain admonished the Federal Reserve. This week the gold and silver marketbears are showing signs of exhaustion, to suggest near-term market bottoms arein place. December gold futures were last up $4.40 an ounce at $1,198.80.September Comex silver was last up $0.085 at $14.76 an ounce.

Thefeature in the marketplace today is a weaker U.S. dollar in the wake of remarksfrom Trump to supporters criticizing the Federal Reserve for raising interestrates. Trump reportedly said Fed Chairman Jay Powell is not doing the job thepresident had hoped he'd do, according to Reuters. The Fed has raised U.S.interest rates twice this year and is likely to raise them at least one moretime this year.

U.S.and world stock markets were mostly firmer overnight and brushed off Trump'scomments on the Fed.

AChinese central bank official has reportedly said China will not use itscurrency, the yuan, to gain leverage in its trade war with the U.S. The yuanhas dropped around 10% against the U.S. dollar since April. The U.S. is set toslap more tariffs on China's imported products this week, despite the world'stwo largest economies holding low-level trade talks later this month.

Ahighlight of the trading week will be the annual meeting of world centralbankers in Jackson Hole, Wyoming, late this week. The Fed's FOMC minutes arealso due out Wednesday afternoon.

Theother key outside market today find Nymex crude oil prices firmer and trading justbelow $67.00 a barrel.

U.S.economic data due for release today is light and includes the weekly GoldmanSachs and Johnson Redbook retail sales reports.

Technically,gold bears still have the overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,226.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at last week's low of$1,167.10. First resistance is seen at the overnight high of $1,203.10 and thenat $1,212.50. First support is seen at Monday's low of $1,189.60 and then at $1,180.00.Wyckoff's Market Rating: 2.5

Septembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $14.00. Firstresistance is seen at the overnight high of $14.83 and then at $15.00. Nextsupport is seen at $14.50 and then at last week's low of $14.315 and then at $14.25.Wyckoff's Market Rating: 2.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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