Gold Higher Amid Some Risk Aversion, Bullish Charts
(Kitco News) - Gold is seeing good price gains in early U.S. trading Tuesday. Some risk aversion in the marketplace is prompting a bit of safe-haven demand. Chart-based buying is also evident as the near-term technical posture for gold is becoming more bullish. June Comex gold was last up $8.60 an ounce at $1,262.60. May Comex silver was last up $0.183 at $18.395 an ounce.
World stock markets were mostly weaker Tuesday and U.S. stock indexes are also set for modestly lower openings when the New York day session begins. Traders and investors are a bit tentative ahead of key events later this week. The world marketplace will be closely watching the meetings this week between U.S. President Donald Trump and Chinese leader Xi Jinping. FOMC minutes are out Wednesday afternoon and the U.S. employment report is due Friday morning.
Some weaker-than-expected U.S. economic data released Monday is also putting just a bit of apprehension into the world marketplace.
The key outside markets on Tuesday morning see the U.S. dollar index firmer. The index has seen a solid rebound from a 3.5-month low hit last week and the bulls have the slight overall near-term technical advantage. Meantime, Nymex crude oil prices are also modestly higher. The oil bulls have some upside technical momentum to suggest a near-term market bottom is in place.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the international trade report, the ISM New York report on business, manufacturers’ shipments and inventory, and the IDB/TIPP economic optimism index.
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Technically, June gold futures bulls still have the overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,268.10. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,225.00. First resistance is seen at the March high of $1,264.20 and then at $1,268.10. First support is seen at the overnight low of $1,255.50 and then at $1,250.00. Wyckoff’s Market Rating: 6.0
May silver prices hit a four-week high overnight and the bulls have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at the February high of $18.54 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at $18.54 and then at $18.75. Next support is seen at the overnight low of $18.27 and then at $18.00. Wyckoff's Market Rating: 6.0.