Gold Slightly Down, But Bulls Stabilize Market
(Kitco News) - Gold prices are trading slightly lower in early U.S. trading Wednesday. However, price action this week has seen stabilization in the yellow metal, which does favor the bulls. More upside price action this week would produce positive chart signals to suggest a near-term market bottom is in place. August Comex gold futures were last down $0.80 an ounce at $1,301.40. July Comex silver was last up $0.102 at $16.645 an ounce.
World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. The U.S. stock indexes hit 2.5-month highs again today as traders and investors are in upbeat, risk-taking moods at present. This is a bearish element for safe-haven gold and silver markets.
Italian government bond yields are on the rise again, amid some tensions arising from the formation of an anti-establishment political faction of government that wants to change the rules regarding Italy’s membership in the European Union.
In the latest news on the U.S.-China trade dispute, reports overnight said China has offered to buy $70 billion of U.S. farm, manufacturing and energy goods if the U.S. drops its import tariff plans.
India’s central bank raised its main interest rate by 0.25% Wednesday, to 6.25%, due to the prospect of rising inflationary pressures.
The key “outside markets” today find Nymex crude oil prices slightly weaker and trading just above $65.00 a barrel. The U.S. dollar index is weaker today on more of a corrective pullback from recent gains that last week pushed prices to a 10.5-month high.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, revised productivity and costs, the U.S. international trade report, and the weekly DOE liquid energy stocks report.
Technically, August 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 $1,332.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,286.80. First resistance is seen at this week’s high of $1,304.80 and then at last week’s high of $1,312.60. First support is seen at last week’s low of $1,293.10 and then at the May low of $1,286.80. Wyckoff's Market Rating: 4.5
July silver futures bears have the slight 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 the May low of $16.07. First resistance is seen at $16.74 and then at the May high of $16.865. Next support is seen at today’s low of $16.505 and then at last week’s low of $16.31. Wyckoff's Market Rating: 4.5.