Gold Slightly Down As Bulls Try to Stabilize Market
(Kitco News) - Gold prices are slightly lower in early U.S. trading Wednesday. Bulls are fighting to hold the yellow metal above critical chart support at $1,300.00. Buyer interest in the precious metals continues to be squelched by a stronger U.S. dollar index that hit another 4.5-month high overnight. June Comex gold futures were last down $0.80 an ounce at $1,313.00. July Comex silver was last up $0.023 at $16.495 an ounce.
The just-released U.S. producer price index for April came in at up 0.1% from March. The “core” rate that excludes food and energy was up 0.2%. Both numbers were forecast to come in at up 0.2%, month-on-month. The gold and silver markets were not impacted by this report.
World stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
The marketplace is still buzzing about the U.S. pulling out of the Iran nuclear deal, but markets, themselves, are not showing much reaction—with the exception of solidly higher crude oil prices that have basically recovered Tuesday’s losses.
The “outside markets” today find Nymex crude oil prices solidly higher, at a new 3.5-year high, and trading near $71.00 a barrel. The U.S. dollar index is slightly higher and hit another 4.5-month high overnight.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the producer price index, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, June gold bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,338.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,320.10 and then at $1,325.00. First support is seen at the May low of $1,302.30 and then at $1,300.00. Wyckoff's Market Rating: 5.0
July silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at last week’s high of $16.62 and then at $16.75. Next support is seen at this week’s low of $16.335 and then at $16.25. Wyckoff's Market Rating: 3.5.