Sharp Gains In Gold Amid Shaky Trump White House
(Kitco News) -Gold prices were ending the U.S. day session with solid gains Wednesday, on safe-haven demand and amid an eroding U.S. dollar index. Gold prices were set to close higher for the sixth straight U.S. trading session. June Comex gold was last up $20.00 an ounce at $1,256.40. July Comex silver was last up $0.158 at $16.90 an ounce.
World stock markets are shuddering at mid-week amid a slumping U.S. dollar against the major world currencies. The dollar index hit a six-month low Wednesday and has been pressured in large 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 asked the FBI to back off investigating ousted national security advisor Michael Flynn. Earlier this week focus was on Trump reportedly leaking U.S. secrets to the Russians. Traders and investors wonder what will be next. 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. That’s fully bullish for safe-haven gold. The sense of the marketplace right now is that the Trump turmoil will get worse before it gets better.
The other outside market saw Nymex crude oil futures prices higher Wednesday. Oil bulls have some upside momentum as Nymex futures prices have rallied around $6.00 a barrel from the May low.
Technically, June gold futures prices closed nearer the session high. The gold bulls and bears are now back on a level overall near-term technical playing field, but the bulls have momentum on their side. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,226.80. First resistance is seen at today’s high of $1,260.50 and then at $1,268.00. First support is seen at $1,250.00 and then at 1,241.50. Wyckoff's Market Rating: 5.0
July silver futures prices closed near mid-range and saw more short covering and bargain hunting. The silver market bears still have the overall near-term technical advantage. However, it appears that a market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 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 today’s high of $17.035 and then at $17.25. Next support is seen at $16.61 and then at this week’s low of $16.41. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed down 40 points at 254.65 cents today. Prices closed nearer the session high today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 246.25 cents. First resistance is seen at today’s high of 255.95 cents and then at 258.00 cents. First support is seen at this week’s low of 251.80 cents and then at 250.00 cents. Wyckoff's Market Rating: 4.0.