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Gold Higher As World Stock Markets Pause

Kitco News

(Kitco News) - Gold prices are moderately higher early U.S. trading Wednesday. Steady-to-weaker world stock markets today are helping to lift the competing asset class precious metals. August Comex gold was last up $7.90 an ounce at $1,253.70. July Comex silver was last up $0.211 at $16.585 an ounce.

World stock markets are seeing some selling pressure from swooning energy sector stocks due to falling crude oil prices recently. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.

Besides the recent slump in crude oil prices, another feature in the marketplace this week has been falling world government bond yields. Earlier this year many analysts and market watchers were looking for rising inflationary pressures to put central bank monetary policies back into more traditional postures regarding their interest rates. However, at mid-year most inflation numbers around the world have either held steady or even backed off a bit.

The key “outside markets” on Thursday morning see Nymex crude oil futures prices firmer on a tepid short-covering bounce after hitting a 14-month low on Wednesday. The oil market bears have the solid overall near-term technical advantage as prices are trading below $43.00 a barrel. Meantime, the U.S. dollar index is near steady early today. The index has stabilized this week and that’s good news for the greenback bulls.

U.S. economic data due for release Thursday include the weekly jobless claims report, the monthly house price index, leading economic indicators, and the Kansas City Fed manufacturing survey. The Federal Reserve also releases its stress test results on some big banks.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,225.00. First resistance is seen at this week’s high of $1,257.30 and then at $1,268.50. First support is seen at the overnight low of $1,246.40 and then at this week’s low of $1,241.70. Wyckoff’s Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

July silver bears have the overall near-term technical advantage as prices hit a five-week low on Wednesday. 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 the May low of $16.06. First resistance is seen at this week’s high of $16.68 and then at $16.80. Next support is seen at this week’s low of $16.315 and then at $16.06. Wyckoff's Market Rating: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.