Gold, Silver Bounce As U.S. Dollar Backs Down
(Kitco News) -Gold and silver prices are modestly higher in early U.S. trading Tuesday, on corrective rebounds from recent selling pressure. If the gold bulls cash push and close prices back above the critical $1,300.00 level, then a near-term market bottom would likely be in place. However, upbeat trader and investor risk appetite in the marketplace recently is making life difficult for the safe-haven metals bulls. June Comex gold futures were last up $3.50 an ounce at $1,294.30. July Comex silver was last up $0.10 at $16.62 an ounce.
World stock markets were mixed overnight, with Asian stocks down and European stock indexes modestly up. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Little risk aversion in the marketplace recently is driving many world stock indexes to multi-month highs. The apparent easing of U.S.-China trade tensions has traders and investors in upbeat moods early this week.
The key “outside markets” today find Nymex crude oil prices up and at a new 3.5-year high and trading above $72.00 a barrel. Brent crude is near $80.00 a barrel as the U.S. is set to once again sanction Iran, which would likely reduce that country’s oil sales on the world market. The up-trending crude oil market is one bullish underlying element for the metals markets.
Meantime, the U.S. dollar index is lower on a corrective pullback from recent good gains that saw prices hit a six-month high on Monday.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the Richmond Fed business survey. The U.S. data-point highlight of the week will be Wednesday afternoon’s release of the FOMC minutes from the last meeting.
Technically, June gold bears have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above what is now solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,247.20. First resistance is seen at today’s high of $1,296.00 and then at $1,300.00. First support is seen at today’s low of $1,287.20 and then at Monday’s low of $1,281.20. Wyckoff's Market Rating: 3.5
July silver futures bears have the overall near-term technical advantage, but the bulls are starting out the week strong. 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 the May low of $16.07. First resistance is seen at $16.75 and then at the May high of $16.865. Next support is seen at the overnight low of $16.465 and then at Monday’s low of $16.28. Wyckoff's Market Rating: 4.0.