Gold Rebounds On Bullish Daily Posture Of Outside Markets
(Kitco News) - Gold prices are firmer in early U.S. trading Wednesday, on a corrective bounce from recent selling pressure that drove prices to a seven-week low Tuesday. The key “outside markets” are in a bullish daily posture for the precious metals markets, as the U.S. dollar index is weaker and crude oil prices are higher. June Comex gold was last up $6.10 an ounce at $1,222.30. July Comex silver was last up $0.153 at $16.22 an ounce.
Some short covering in the gold and silver futures markets and bargain hunting in the cash markets are featured today.
World stock markets were mostly weaker in overnight trading, on some profit taking and corrective technical pullbacks from recent gains. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Safe-haven gold is supported on days when the world stock markets are not in a rally mode.
The world marketplace is so far not paying much attention to the surprise move by U.S. President Donald Trump to fire FBI Director James Comey Tuesday afternoon.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, import and export prices, the monthly Treasury budget statement and the weekly DOE liquid energy stocks report.
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Technically, June gold futures bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,200.00. First resistance is seen at Tuesday’s high of $1,228.70 and then at this week’s high of $1,236.90. First support is seen at this week’s low of $1,214.30 and then at $1,210.00. Wyckoff’s Market Rating: 3.5
July silver bears have the firm overall near-term technical advantage. Prices hit a four-month low Tuesday. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at this week’s high of $16.455 and then at $16.645. Next support is seen at this week’s low of $16.06 and then at $16.00. Wyckoff's Market Rating: 2.5.