Gold, Silver Prices Weaker In Quiet, Summertime Trading
(Kitco News) - Gold prices are moderately lower and silver prices are slightly down in early U.S. trading Thursday. Bearish near-term technical postures for gold and silver combined with no major fundamental news to drive the markets at present are allowing both metals prices to drift sideways to lower. August gold futures were last down $3.90 an ounce at $1,228.00. September Comex silver was last down $0.024 at $15.565 an ounce.
World stock markets were mixed to weaker overnight, as Asian bourses were mostly lower and European equities mostly higher. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. U.S. stock index futures on Wednesday hit new contract or multi-month highs.
The European Central Bank, at its regular monetary policy meeting Thursday, left interest rates unchanged, as expected. As usual, traders will focus on ECB President Mario Draghi’s press conference, in which he may reveal clues about futures ECB policy moves.
The U.S. and European Union reached a tentative trade deal Wednesday, which somewhat assuaged European equity markets overnight.
The buzz in the marketplace this morning is the big downside hit to the Facebook stock price after that company posted a big miss in earnings Wednesday afternoon.
The key “outside markets” today find Nymex crude oil prices near steady and trading just above $69.00 a barrel. The U.S. dollar index is slightly weaker early today.
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 Thursday includes the weekly jobless claims report, durable goods orders and the Kansas City Fed manufacturing survey.
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 the overnight high of $1,235.30 and then at $1,240.00. First support is seen at Wednesday’s 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 Wednesday’s low of $15.47 and then at this week’s low of $15.34. Wyckoff's Market Rating: 2.0.