Gold Sees Modest Up-Move As Trump Rebukes Iran Nuke Deal
(Kitco News) - Gold prices saw a modest rally in early-afternoon U.S. trading Tuesday, as U.S. President Donald Trump announced the U.S. is pulling out of the 2015 agreement with Iran regarding that nation halting its nuclear weapons program. However, prices have pulled back a bit from session highs scored just after Trump started his speech. Still, gold prices are modestly above where they were just before Trump’s announcement. June Comex gold futures were last up $2.40 an ounce at $1,316.50. July Comex silver was last up $0.035 at $16.535 an ounce.
Most market watchers believed the U.S. would indeed not renew the deal struck with Iran to curtail its nuclear arms development. What is surprising is that Trump appeared to leave no room for negotiation with Iran on the matter—a more hard-line approach than some expected. The Iran nuclear agreement expires Saturday. The U.S. pulling out of the agreement and sanctions against Iran being reapplied inject new uncertainty into an already unstable Middle East. That’s bullish for safe-haven gold.
It is critical for the gold market bulls to keep their precious metal above chart support at $1,300.00. A drop below that key level would set off sell stop orders in the futures market, which would likely help to trigger of a solid leg down in prices.
The “outside markets” today see crude oil prices lower on profit taking after hitting a 3.5-year high above $70.00 on Monday. However, prices were well up from the daily lows after the announcement from Trump on Iran.
Meantime, the U.S. dollar index is higher and hit a 4.5-month high overnight. The index is in a steep price uptrend and the greenback bulls have technical power to suggest more upside in the near term.
Technically, the gold bulls and bears are on a level overall near-term technical playing field. A close below major psychological support at $1,300.00 would open the door to a larger leg down in prices in the near term. However, right now it appears that strong support level will hold, for now. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,337.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,320.10 and then at $1,325.00. First support is seen at today’s low of $1,306.20 and then at the May low of $1,302.30. Wyckoff's Market Rating: 5.0
The silver bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing 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 December low of $15.805. First resistance is seen at last week’s high of $16.62 and then at $16.75. Next support is seen at $16.25 and then at the May low of $16.07. Wyckoff's Market Rating: 3.5.
July N.Y. copper closed down 235 points at 305.55 cents today. Prices closed near mid-range today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 321.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 295.85 cents. First resistance is seen at this week’s high of 310.45 cents and then at last week’s high of 312.15 cents. First support is seen at today’s low of 301.40 cents and then at 300.00 cents. Wyckoff's Market Rating: 5.0.