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Gold Backs Down A Bit After Recent Solid Gains

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(Kitco News) - Gold prices were ending the U.S. day session modestly lower, on a normal corrective pullback after the strong gains posted earlier this week. Prices did hit a three-week high in overnight trading. Safe-haven buying has been featured just recently, as U.S. President Trump is in serious trouble. June Comex gold was last down $3.70 an ounce at $1,255.00. July Comex silver was last down $0.241 at $16.665 an ounce.

Asian and European stock markets were mostly lower Thursday, on growing tensions in the White House that could cripple the Trump presidency in the coming months, or worse. News that a special prosecutor has been procured by Congress to investigate Russia’s involvement in the last U.S. presidential election is the latest shoe to drop on a Trump presidency that is now in crisis mode.

The U.S. stock market sold off sharply Wednesday and had its worst day since last September, following reports Trump asked the just-fired FBI director James Comey to drop his investigation of Trump’s former national security advisor Michael Flynn.  The stock indexes were seeing minor recoveries at midday on Thursday.

Many market watchers now fear Trump’s administration is paralyzed and won’t be able to enact its pro-business legislation.  Look for the safe-haven markets like gold and U.S. Treasuries to continue to see buying support in the near term. The Trump crisis will likely not fade any time soon.

The U.S. dollar index hit another six-month low Thursday and has been pressured in large part recently by the Trump Administration turmoil. Up to this week, the marketplace had been mostly ignoring the politics in Washington, D.C. The slumping greenback is a bullish underlying element for the raw commodity markets, including the precious metals.

The other outside market on Thursday saw Nymex crude oil futures prices firmer in early afternoon U.S. trading. The recent rally in the crude oil market has also been a bullish factor for the precious metals markets.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed nearer the session low and saw a normal corrective pullback from recent solid gains. The gold bulls and bears are on a level overall near-term technical playing field, but the bulls still have some momentum on their side. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,226.80. First resistance is seen at today’s high of $1,265.00 and then at $1,268.00. First support is seen at today’s low of $1,249.20 and then at 1,241.50. Wyckoff's Market Rating: 5.0

July silver futures prices closed near mid-range. The silver market bears have the overall near-term technical advantage. However, it still appears that a market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.06. First resistance is seen at today’s high of $16.945 and then at this week’s high of $17.035. Next support is seen at this week’s low of $16.41 and then at $16.25. Wyckoff's Market Rating: 2.5.

July N.Y. copper closed down 150 points at 253.15 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 246.25 cents. First resistance is seen at this week’s high of 255.95 cents and then at 258.00 cents. First support is seen at 250.00 cents and then at the May low of 247.25 cents. Wyckoff's Market Rating: 4.0.

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 precious metal products, 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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