Gold, Silver Prices Near Steady; Bulls Work To Stabilize Markets
(Kitco News) - Gold and silver prices are trading near unchanged levels in early U.S. trading Wednesday. Gold did hit a six-month low overnight. The precious metals bulls are attempting to stop the bleeding in prices, which has mainly come from an eroding raw commodity sector. However, the big rally in crude oil recently is a solid clue the raw commodity sector has bottomed out and will see better days just ahead. August gold futures were last up $0.90 an ounce at $1,260.80. July Comex silver was last up $0.01 at $16.26 an ounce.
World stock markets were weaker overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Lingering concerns about a global trade war among the major economies are weighing on the global equities markets.
The Trump administration has just announced it will focus on existing laws to restrict Chinese investment in the U.S., and not employ alternative executive actions. The marketplace is reading this news as a less-aggressive approach by the Trump administration in dealing with China. U.S. stock indexes cut their overnight losses in this news.
The Chinese currency, the yuan, was guided to a six-month low today by the Chinese central bank. China’s main stock gauge, the Shanghai Composite Index, fell into bear market territory this week, as it has dropped 20% from its January high. Trade war fears have also gripped Asian investors.
The key “outside markets” today find the U.S. dollar index slightly higher. Meantime, Nymex crude oil prices are higher and trading above $71.00 a barrel. The U.S. on Tuesday said it would have “zero tolerance” for Iran exporting its oil to other countries.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the advance economic indicators report, durable goods orders, pending home sales and the weekly DOE liquid energy stocks report.
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 Tuesday’s high of $1,269.40 and then at this week’s high of $1,274.40. First support is seen at today’s low of $1,255.00 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 Tuesday’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.