Gold Hits 5-Mo. Low Amid Little Risk Aversion, Powerful Greenback
(Kitco News) - Gold prices are slightly down, and up from the daily lows, in early-afternoon dealings Monday. The yellow metal dropped to a five-month low in early U.S. action. Upbeat investor risk appetite in the world marketplace continues to work against the safe-haven metals. Also, the U.S. dollar index continues to appreciate, to the chagrin of the precious metals market bulls. The U.S. dollar index scored a six-month high today. June Comex gold futures were last down $2.20 an ounce at $1,289.10. July Comex silver was last up $0.055 at $16.51 an ounce.
Some short covering in the futures market and bargain hunting in the cash market did lift gold up from the stronger losses seen in U.S. and overnight trading. The gold market is now short-term oversold on a technical basis, and due for a corrective bounce very soon.
World stock markets were higher today and U.S. stock indexes were solidly higher in midday New York day trading, to underscore the upbeat trader and investor risk attitudes at present.
Also, the world marketplace has been put a bit more at ease by news the U.S. and China have agreed to set aside their trade dispute and not slap tariffs on each other’s goods, for now. U.S. Treasury Secretary Mnuchin made that announcement over the weekend.
European traders and investors are still nervous regarding the potential for Italy’s anti-establishment parties to form a government, and then pulling out of the European Union. Such has caused the yield spread between German and Italian government bonds to widen substantially.
The other key “outside market” today finds Nymex crude oil prices trading higher and above $72.00 a barrel. The rallying oil market is a bullish element for the precious metals that is at least limiting the downside for them.
Technically, gold prices are in a two-month-old downtrend on the daily bar chart. The gold bears have the overall near-term technical advantage. 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 the December low of $1,247.20. First resistance is seen at $1,294.00 and then at $1,300.00. First support is seen at today’s low of $1,281.20 and then at $1,275.00. Wyckoff's Market Rating: 3.5
Silver prices scored a mildly bullish “outside day” up on the daily bar chart. Short covering was featured. 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 the May high of $16.865 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.07. First resistance is seen at $16.565 and then at $16.75. Next support is seen at today’s low of $16.28 and then at last week’s low of $16.19. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed up 320 points at 309.55 cents today. Prices closed nearer the session high today. The copper bulls and bears are on a level overall near-term technical playing field amid recent choppy trading. 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 today’s high of 311.15 cents and then at the May high of 313.10 cents. First support is seen at today’s low of 306.50 cents and then at 305.00 cents. Wyckoff's Market Rating: 5.0.