Gold, Silver Slightly Up; U.S. ADP Report A Non-Event
(Kitco News) -Gold and silver prices are trading slightly higher in early U.S. dealings Wednesday. Several fundamental factors are in play in the marketplace at mid-week, but none seem to be having much impact on the precious metals so far today. June Comex gold futures were last up $1.00 an ounce at $1,299.60. July Comex silver was last up $0.087 at $16.455 an ounce.
The key data point for today is the national employment report for May, which came in at up 178,000. The report came in close to the forecast for up 187,000. The ADP report is the precursor to the Labor Department’s employment situation report on Friday morning. The precious metals markets paid little attention to the just-released report.
It’s a very busy day for U.S. economic data Wednesday, including the weekly Goldman Sachs and Johnson Redbook retail sales reports, the weekly MBA mortgage applications survey, the advance economic indicators report, the second estimate of first-quarter GDP, and the Federal Reserve’s beige book.
There are still geopolitical concerns at mid-week. The U.S. continues to ratchet up the pressure on China, regarding trade issues.
Worries about Italy’s future in the European Union are also causing anxiety among European investors.
The key “outside markets” today find Nymex crude oil prices firmer on a corrective bounce after slumping to a six-week low on Tuesday. The recent steep downdraft suggests the market has put in at least a near-term top.
Meantime, the U.S. dollar index is solidly lower on profit taking after hitting hit a 10.5-month high on Tuesday.
Technically, June gold bears still have the slight overall near-term technical advantage. Prices are still in a seven-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above the May high of $1,326.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,281.20. First resistance is seen at last week’s high of $1,307.20 and then at $1,309.00. First support is seen at Tuesday’s low of $1,294.60 and then at $1,286.70. Wyckoff's Market Rating: 4.5
July silver futures bulls and bears are on a level overall near-term technical playing field, amid recent choppy trading. 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 Tuesday’s high of $16.53 and then at last week’s high of $16.74. Next support is seen at Tuesday’s low of $16.31 and then at $16.19. Wyckoff's Market Rating: 5.0.