Gold Solidly Up On Greenback Slide, Trump Turmoil
Gold prices are posting solid gains and hit a two-week high in early U.S. trading Wednesday, on safe-haven demand and amid an eroding U.S. dollar index. June Comex gold was last up $16.70 an ounce at $1,253.00. July Comex silver was last up $0.203 at $16.945 an ounce.
World stock markets are shaky at mid-week amid a slumping U.S. dollar against the major world currencies. The dollar index hit a six-month low overnight and has been pressured in part recently by what many traders and investors see as increasing tensions in the Trump Administration that could at least delay or prevent his pro-business and other initiatives from succeeding, or at most eventually derail his presidency.
The latest reports on the Trump turmoil say the U.S. President may have asked the FBI to back off investigating ousted national security advisor Michael Flynn. Up to now, the marketplace had been mostly ignoring the politics in Washington, D.C. However, markets are now thinking Trump could be in some real trouble. Thatâ??s bullish for safe-haven gold.
Nymex crude oil futures prices firmer in early U.S. trading today. Oil bulls still have some upside momentum as Nymex futures prices have rallied around $6.00 a barrel from the May low.
U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.
Technically, June gold futures bears still have the slight overall near-term technical advantage, but the bulls have momentum on their side. A four-week-old downtrend on the daily bar chart has been negated. Bullsâ?? next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,268.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the May low of $1,214.30. First resistance is seen at $1,260.00 and then at $1,268.00. First support is seen at $1,241.50 and then at todayâ??s low of $1,236.30. Wyckoffâ??s Market Rating: 4.5
July silver bears still have the overall near-term technical advantage. However, recent upside price action suggests a near-term market bottom is in place. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.06. First resistance is seen at $17.00 and then at $17.25. Next support is seen at $16.61 and then at $16.50. Wyckoff's Market Rating: 3.0.