Gold Pushes Above $1,300 As Trump Scuttles Summit With North Korea
(Kitco News) - Gold and silver prices are solidly higher in early-afternoon U.S. trading Thursday. The metals were enjoying a short-covering and bargain-hunting bounce early on when news hit that U.S. President Trump has cancelled a summit with North Korean President Kim Jong Un, regarding North Korea’s nuclear ambitions. Gold immediately shot above what was major psychological resistance and hit its daily high. The weaker U.S. dollar index today also invited some metals buyers back into those markets. June Comex gold futures were last up $14.00 an ounce at $1,304.50. July Comex silver was last up $0.265 at $16.67 an ounce.
The U.S.-North Korean souring of relations puts geopolitics right back on the front burner of the marketplace, and that’s bullish for safe-haven gold and silver markets. There are also other world matters of concern, including Iran’s nuclear ambitions and possible turmoil in the European Union. Not to mention a major U.S.-China trade dispute that remains unresolved.
Buying interest in world stock markets was squelched a bit today when U.S. President Trump late Wednesday threatened more tariffs on foreign autos and auto parts.
The European Central Bank has warned that its countries’ bond markets would suffer if the bloc continues to show economic weakness. After an extended period of calm, concerns about the viability of the European Union have arisen again after anti-establishment politicians in Italy are preparing to form a coalition government.
The key “outside markets” today find Nymex crude oil prices weaker on profit taking after hitting a 3.5-year high on Tuesday.
Meantime, the U.S. dollar index is weaker on profit taking after hitting a six-month high on Wednesday.
Technically, while gold prices are still in a two-month-old downtrend on the daily bar chart, today’s close above what was key psychological resistance at $1,300.00 does suggest the market has put in a near-term bottom. The gold bears still have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the May high of $1,326.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,281.20. First resistance is seen at today’s high of $1,306.40 and then at $1,309.00. First support is seen at $1,300.00 and then at today’s low of $1,292.20. Wyckoff's Market Rating: 4.5
The silver bulls and bears are back on a level overall near-term technical playing field. 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 May low of $16.07. First resistance is seen at this week’s high of $16.70 and then at the May high of $16.865. Next support is seen at today’s low of $16.42 and then at this week’s low of $16.28. Wyckoff's Market Rating: 5.0.
July N.Y. copper closed up 245 points at 309.50 cents today. Prices closed near the session high 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 May low of 301.40 cents. First resistance is seen at 310.00 cents and then at Wednesday’s high of 313.20 cents. First support is seen at today’s low of 306.60 cents and then at the May low of 301.40 cents. Wyckoff's Market Rating: 5.0.