U.S. Dollar Continues To Crush Gold Prices, Hovering Near 12-Month Lows
(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Monday. Gold is not far above last week’s 12-month low, while silver futures hit a 6.5-month low overnight. A firmer U.S. dollar index is a negative for the precious metals to start the trading week. August gold futures were last down $4.10 an ounce at $1,250.30. July Comex silver was last down $0.194 at $15.91 an ounce.
World stock markets were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. World trade tensions remain high, which is causing some anxiety in the market place again to start the trading week and the trading quarter.
U.S. President Trump is now focusing on auto imports into the U.S. for tariffs. The already-tense trade relations between the U.S. and the other major economies of the world appear to have ratcheted up another notch.
Some political fighting in Germany, regarding that country’s immigration laws, is a bit negative for the Euro currency early this week.
In other overnight news, the Euro zone unemployment rate was reported at 8.4% in May, which was unchanged from June. The Euro zone manufacturing purchasing managers’ index (PMI) came in at 54.9 in June, which was just slightly below market expectations. A reading above 50.0 suggests growth in the sector.
It could be a quieter trading week this week, as Canadian markets are closed today for Canada Day and the U.S. Independence Day holiday is on Wednesday. However, some important U.S. economic data is out later this week, including the Fed’s FOMC minutes on Thursday and the jobs report on Friday.
The other key “outside markets” today finds Nymex crude oil prices are modestly lower and trading just below $74.00 a barrel.
U.S. economic data due for release Monday includes the U.S. manufacturing PMI, construction spending, the global manufacturing PMI, and the ISM manufacturing report on business.
Technically, gold bears have the firm overall near-term technical advantage amid the price downtrend on the daily bar chart. But the market is still technically oversold. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at Friday’s high of $1,257.10 and then at $1,261.90. First support is seen at last week’s low of $1,26.90 and then at $1,240.00. Wyckoff's Market Rating: 2.5
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 $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.805. First resistance is seen at Friday’s high of $16.115 and then at $16.295. Next support is seen at $15.805 and then at $15.75. Wyckoff's Market Rating: 2.5.