Gold, Silver Prices Rebound As U.S. Dollar Dips
(Kitco News) - Gold prices are moderately higher, while silver prices are slightly up in early U.S. trading Wednesday. Some more short covering by the shorter-term futures traders is featured in both metals, following recent strong selling pressure that drove both to 12-month lows last week. A weaker U.S. dollar index on this day is also working in favor of the precious metals market bulls. August gold futures were last up $6.70 an ounce at $1,232.20. September Comex silver was up $0.08 at $15.60 an ounce.
World stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. There remains little risk aversion in the marketplace at present, which is bearish for safe-haven gold and silver.
U.S. President Trump is meeting with the European Union Commission leader Juncker today to try to de-escalate trade tensions between the U.S. and the EU. The U.S. has threatened EU automobiles with import tariffs.
In the currency markets, focus is on the Turkish lira, which has been under strong pressure. Also, the Chinese yuan has seen serious depreciation against the U.S. dollar in recent months.
The other key “outside market” today finds Nymex crude oil prices near steady and trading just around $68.50 a barrel.
The big U.S. economic data point of the week is Friday’s first estimate of gross domestic product (GDP). The number is expected to come in at up a strong 4.4%. However, some analysts are even calling for a number of 5.0% or just above.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, new residential sales, and the weekly DOE liquid energy stocks report.
Technically, gold bears still have the solid 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 $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,235.20 and then at $1,240.00. First support is seen at the overnight low of $1,223.20 and then at this week’s low of $1,218.10. Wyckoff's Market Rating: 2.0
September silver futures bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $15.75 and then at $15.90. Next support is seen at today’s low of $15.47 and then at this week’s low of $15.34. Wyckoff's Market Rating: 2.0.