Gold Pressured by Bearish Outside Markets, Rallying EquitiesBy Jim Wyckoff of Kitco News
Thursday June 11, 2015 13:44
(Kitco News) - Gold prices ended the U.S. day session moderately lower Thursday, succumbing to the forces of bearish outside markets—a higher U.S. dollar index and lower crude oil prices. A rebound in world stock markets late this week is also a negative for gold. August Comex gold was last down $6.40 at $1,180.20 an ounce. July Comex silver was last up $0.001 at $15.965 an ounce.
European stocks were higher Thursday, partly due to some renewed optimism regarding the Greece-EU/IMF debt negotiations that have been ongoing. The European Central Bank has this week extended more emergency loan funding to Greece. However, no formative agreement has been reached on restructuring Greece’s debt. A German ECB official said Thursday time is running out for Greece and that the risks of Greece becoming insolvent are growing by the day. This situation is partly blamed for the recent European bond market turmoil.
German bonds saw more selling pressure Thursday, while U.S. bond markets were stable, following the sell-offs in both markets Wednesday.
There was more economic data coming out of China Thursday. Industrial production was up 6.1% in May. Fixed-asset investment was up 9.9% in May and housing starts were up 30% in May, year-on-year. Auto sales were up 1.2% in May, which was the slowest pace in four years. All in all, Thursday’s China data was deemed slightly upbeat but not great. Many market watchers believe China’s central bank will soon implement more monetary policy stimulus measures to boost the world’s second-largest economy. Asian stock markets were supported on the China news, and on news South Korea and New Zealand lowered their key interest rates.
Crude oil prices saw a corrective pullback Thursday after hitting a four-week high on Wednesday. Still, the crude oil bulls are having a good week, overall.
The London P.M. fix is $1,178.50 versus the previous A.M. fixing of $1,180.50.
Technically, August gold futures prices closed near mid-range today. Gold bears have the firm overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the June low of $1,161.00. First resistance is seen at today’s high of $1,187.40 and then at this week’s high of $1,191.80. First support is seen at today’s low of $1,174.80 and then at this week’s low of $1,168.50. Wyckoff’s Market Rating: 2.5
July silver futures prices closed nearer the session high today after hitting a six-week low early on. Silver bears have the firm near-term technical advantage. A four-week-old downtrend is in place on the daily bar chart. 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 April low of $15.595. First resistance is seen at this week’s high of $16.19 and then at $16.40. Next support is seen at today’s low of $15.77 and then at $15.595. Wyckoff's Market Rating: 2.0.July N.Y. copper closed down 755 points at 267.15 cents today. Prices closed nearer the session low and hit a nearly three-month low today. The key “outside markets” were bearish for copper today as the U.S. dollar index was higher and crude oil prices were lower. Copper bears have the near-term technical advantage and gained fresh downside momentum today. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week’s high of 276.70 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at 270.00 cents and then at 272.50 cents. First support is seen at today’s low of 265.75 cents and then at 264.00 cents. Wyckoff's Market Rating: 3.0.