Gold Trades Near Steady Ahead Of U.S. - North Korea Summit
(Kitco News) - Gold prices are trading near unchanged levels in early U.S. trading Monday. The safe-haven yellow metal is in a pause mode ahead of Tuesday’s meeting between U.S. President Donald Trump and North Korean President Kim Jong Un. August Comex gold futures were last down $0.40 an ounce at $1,302.20. July Comex silver was last up $0.104 at $16.85 an ounce.
Trump is in Singapore today preparing for the summit meeting. Results of this meeting are very much up in the air and hard for the markets to gauge. This adds an element of uncertainty in the marketplace early this week.
World stock markets were mostly higher overnight and U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
European markets were boosted in part today on notions the political situation in Italy has calmed down from earlier tensions, which suggests the Italian government could be friendlier toward the European Union.
This weekend’s Group of Seven meeting in Canada between the major industrialized countries of the world ended in discord, with the U.S. refusing to sign a G-7 statement. Trade and import tariffs were the major topic of discussion among the finance ministers of the major world economies. The trade-related spat between the U.S. and Canada that is becoming more vitriolic underscores the fading hopes the U.S. and its major trading partners can avoid an escalation in trade sanctions against each other. This matter could be a mixed bag for the gold market. From a safe-haven perspective, it’s bullish because of the tensions between the world’s largest economies. However, from a raw commodity perspective, it’s bearish because of the potential for reduced world trade in raw commodities.
There is no major U.S. economic data due for release Monday.
Technically, August gold bulls and bears are in a level overall near-term technical playing field. A seven-week-old downtrend on the daily bar chart has been negated. 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 last week’s high of $1,307.80 and then at last week’s high of $1,312.60. First support is seen at the Junes low of $1,293.10 and then at $1,286.70. Wyckoff's Market Rating: 5.0
July silver futures bulls have the overall near-term technical advantage as prices hit a six-week high overnight. 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 June low of $16.335. First resistance is seen at the overnight high of $16.955 and then t $17.00. Next support is seen at today’s low of $16.77 and then at $16.645. Wyckoff's Market Rating: 6.0.