Gold Bulls Work To Stabilize Market
(Kitco News) - Gold prices slightly up in early U.S. trading Friday. Bulls are working to stop the bleeding in their precious metal. It’s been a rough one-week trading period for the gold bulls, as prices dropped from a high of $1,313.00 on June 14 to a low of $1,262.40 on June 21, basis August Comex futures. Gold prices also hit a six-month low on Thursday. August Comex gold were last up $1.20 an ounce at $1,271.80. July Comex silver was last up $0.109 at $16.435 an ounce.
World stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Corrective bounces are featured in the stock indexes after some very recent selling pressure.
In overnight news, it was quiet on the China-U.S. trade dispute front. Traders and analysts are waiting for the latest development in the seemingly escalating situation.
The Euro Zone’s Markit composite purchasing managers index (PMI) came in at 54.8 in June from 54.1 in May—the first increase in five months. A reading above 50.0 suggests growth in the sector.
The key “outside markets” today find the U.S. dollar index weaker on profit taking after hitting an 11-month high on Thursday.
Meantime, Nymex crude oil prices higher and trading around $66.50 a barrel. Oil traders are awaiting the outcome of the OPEC meeting that began Friday in Vienna, Austria. Saudi Arabia and Russia are expected to announce they will increase oil production. However, other members, including Iran, want to keep present curtailed-production quotas. This meeting is expected to be one of the most contentious in years. Reports just in said OPEC has reached a deal on a collective production quota.
U.S. economic data due for release Friday includes the U.S. flash manufacturing PMI and the flash services PMI.
Technically, gold bears have the firm overall near-term technical advantage amid a price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid 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 $1,251.90. First resistance is seen at $1,275.00 and then at $1,278.60. First support is seen at today’s low of $1,268.40 and then at this week’s low of $1,262.40. Wyckoff's Market Rating: 3.0
July silver futures bears have the firm 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 $16.50 and then at this week’s high of $16.635. Next support is seen at this week’s low of $16.19 and then at the May low of $16.07. Wyckoff's Market Rating: 3.0.