Gold Near Steady As U.S. Political Storm Calms, For Now
(Kitco News) - Gold prices are near steady in early U.S. trading Friday. The political drama in Washington, D.C., has died down a little bit, for now, which has allowed global stock markets to stabilize and on this day focus more on recent upbeat economic data coming out of the U.S. and the European Union. That’s a negative for safe-haven gold. June Comex gold was last up $0.50 an ounce at $1,253.30. July Comex silver was last up $0.145 at $16.815 an ounce.
Maybe the world marketplace was somewhat assuaged by remarks from U.S. President Donald Trump to the press late Thursday afternoon. He said he had nothing to do with collusion with the Russians regarding the last U.S. presidential election, and did not ask the fired former FBI director to back off on his investigation of Trump’s former national security advisor.
Don’t be surprised if U.S. politics is back on the front burner of the marketplace soon.
The key outside markets on Friday morning find the U.S. dollar index lower again and continuing its downside trek after Thursday’s brief bounce. The dollar index is hovering near this week’s six-month low. Meantime, Nymex crude oil futures prices higher. Oil prices have trended solidly higher just recently, to suggest prices have put in a market bottom.
There is no major U.S. economic data due for release Friday. President Trump begins his first overseas trip as he heads for Israel, Saudi Arabia and Italy.
(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)
Technically, June gold futures bulls have the slight overall near-term technical advantage. 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 closing prices below solid technical support at the May low of $1,214.30. First resistance is seen at this week’s high of $1,265.00 and then at $1,268.00. First support is seen at the overnight low of $1,246.10 and then at $1,241.50. Wyckoff’s Market Rating: 5.5
July silver bears have the overall near-term technical advantage. However, recent upside price action suggests a near-term market bottom is in place. The next upside price breakout objective is closing futures 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 this week’s high of $17.035 and then at $17.25. Next support is seen at the overnight low of $16.565 and then at this week’s low of $16.41. Wyckoff's Market Rating: 3.0.