Gold, Silver Prices Up As Greenback Fades
(Kitco News) - Gold and silver prices are trading modestly higher in early U.S. trading Thursday. The U.S. dollar index is drifting lower this week, which is a positive development for the precious metals market bulls. August Comex gold futures were last up $2.60 an ounce at $1,304.20. July Comex silver was last up $0.141 at $16.83 an ounce.
World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. The U.S. stock indexes are at contract or multi-month highs amid keener risk appetites among traders and investors in the world marketplace. The “risk-on” attitudes have limited the upside in safe-haven gold and silver markets recently.
In overnight news, the Euro zone reported its gross domestic product (GDP) rose at an annual rate of 1.5% in the first quarter of this year. That is well down from the 2.8% growth rate seen in the bloc in the fourth quarter of last year.
Traders are looking ahead to this weekend’s Group of Seven meeting between the major industrialized countries of the world. Trade and import tariffs will likely be the major topic of discussion among the finance ministers of the major world economies.
The key “outside markets” today find Nymex crude oil prices higher and trading above $65.00 a barrel. The U.S. dollar index is lower again today on more of a corrective pullback from recent good gains. More losses in the USDX this week would suggest that a near-term market top is in place.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the IBD/TIPP economic optimism report, monthly chain store sales, and consumer credit.
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, but now just barely. 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 $1,306.10 and then at last week’s high of $1,312.60. First support is seen at Wednesday’s low of $1,297.70 and then at last week’s low of $1,293.10. Wyckoff's Market Rating: 4.5
July silver futures bulls have gained 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 the May high of $16.865 and then at $17.00. Next support is seen at today’s low of $16.67 and then at $16.50. Wyckoff's Market Rating: 5.5.