Gold Prices Down, At 6-Month Low, Amid Little Risk Aversion
(Kitco News) - Gold and silver prices are lower in early U.S. trading Tuesday. Gold hit a six-month low and silver hit a seven-week low. Despite the threat of a major world trade war on the horizon, the marketplace is not seeing keen risk aversion—at least not enough to boost the safe-haven metals. Instead, gold and silver are following their raw commodity counterparts lower on worries of less world trade in raw commodities if a full blown trade war breaks out between the U.S. and the other major economies of the world. August gold futures were last down $11.20 an ounce at $1,257.60. July Comex silver was last down $0.158 at $16.17 an ounce.
World stock markets were mixed overnight. U.S. stock indexes are also pointed toward narrowly mixed openings when the New York day session begins. Traders and investors worldwide are still jittery amid the U.S.-China trade dispute that shows no signs of ebbing. Conflicting comments from Trump administration officials on Monday, regarding sanctions against Chinese firms, only added more uncertainty to the matter.
China loosening its monetary policy this week has some in the marketplace wondering if the Chinese government is devaluing its currency, the yuan, in order to counter the negative impact of U.S. trade tariffs on China’s overall trade.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the consumer confidence index, and the Richmond Fed business survey.
Technically, gold bears have the firm overall near-term technical advantage amid the 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 $1,286.80. 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 $1,265.00 and then at the overnight high of $1,269.40. First support is seen at today’s low of $1,257.00 and then at $1,251.90. 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 $16.75 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 today’s high of $16.35 and then at $16.50. Next support is seen at $16.07 and then at $16.00. Wyckoff's Market Rating: 3.0.