Gold, Silver Prices Down Amid Scant Risk Aversion
(Kitco News) - Gold and silver prices are moderately lower in early U.S. trading Tuesday. The safe-haven metals are suffering from a perceived lack of geopolitical risks in the marketplace at present. A higher U.S. dollar index today is also a negative for the precious metals markets. August gold futures were last down $8.50 an ounce at $1,251.10. July Comex silver was last down $0.109 at $16.03 an ounce.
World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. Rallying stock markets recently attest to the scant risk aversion in the marketplace at present, despite a U.S.-China trade war that is brewing.
In overnight news, the closely watched German ZEW economic sentiment indicator fell to its lowest level in nearly six years with a reading of -24.7 in July. The June reading was -16.1.
The important U.S. economic data due out this week includes the producer price index on Wednesday and the consumer price index on Thursday.
The other key “outside market” today finds Nymex crude oil prices firmer and trading just above $74.00 a barrel. Oil is trading near last week’s 3.5-year high. Precious metals bulls are somewhat frustrated that the rally in crude oil market recently has not spilled over into much support for the metals. In years past, rallying oil prices have pulled other raw commodity markets higher.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, and the NFIB small business index.
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 $1,287.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at the overnight high of $1,261.00 and then at $1,270.00. First support is seen at the overnight low of $1,247.70 and then at last week’s low of $1,238.80. Wyckoff's Market Rating: 2.5
September 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 $16.565 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.50. First resistance is seen at this week’s high of $16.26 and then at $16.50. Next support is seen at the overnight low of $15.92 and then at last week’s low of $15.80. Wyckoff's Market Rating: 2.5.