Gold At 6-Week High On Some Safe-Haven Demand, Bullish Charts
(Kitco News) - Gold prices are moderately up and have hit a six-week high in early U.S. trading Monday. Some new geopolitical developments in the Middle East and an increasingly bullish near-term technical posture are prompting more trader and investor buying interest in the yellow metal. Gold prices are now within striking distance of the key $1,300.00 mark. August Comex gold was last up $5.40 an ounce at $1,285.50. July Comex silver was last up $0.06 at $17.585 an ounce.
There are some new geopolitical tensions in the Middle East that are prompting just a bit of risk aversion that is supporting the safe-haven gold market. Saudi Arabia and a few other Middle East nations have cut ties with Qatar after accusing that small country of promoting terrorism.
Another terror attack that killed seven people in London over the weekend had little impact on the world markets. Unfortunately, these acts have become a fact of life in recent years and markets tend to quickly look past them.
Nymex crude oil futures prices are slightly lower in early U.S. trading. The oil market bears have the firm overall near-term technical advantage. The other “outside market” on Monday morning finds the U.S. dollar index firmer on a short-covering bounce after hitting a six-month low late last week. The greenback bears are also in firm near-term technical control as dollar index prices are in a three-month-old downtrend.
Traders and investors are starting to look over the horizon, as key marketplace developments in the coming days include general elections in the U.K. later this week and the FOMC meeting next week.
U.S. economic data due for release Monday includes revised productivity and costs, the U.S. services PMI, manufacturers’ shipments and inventories, the employment trends index, the ISM non-manufacturing survey, and the global services PMI.
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Technically, August gold futures bulls have the firm overall near-term technical advantage as prices are in an uptrend on the daily bar chart. 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 closing prices below solid technical support at the May low of $1,217.80. First resistance is seen at $1,290.00 and then at $1,300.00. First support is seen at $1,280.00 and then at $1,275.00. Wyckoff’s Market Rating: 6.5
July silver prices hit a five-week high overnight. Bulls have gained the slight overall near-term technical advantage. The next upside price breakout objective is closing futures 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 $16.75. First resistance is seen at $17.75 and then at $18.00. Next support is seen at $17.465 and then at $17.25. Wyckoff's Market Rating: 5.5.