Gold, Silver Prices Get Slight Lift As Greenback Sets Back
(Kitco News) - Gold and silver prices were trading modestly higher in early-afternoon U.S. dealings Wednesday. A sharp drop in the U.S. dollar index today was a bit supportive for the precious metals markets. However, the USDX hit a 10.5-month high on Tuesday. Several fundamental factors are in play in the marketplace at mid-week, but few seem to be having much impact on the precious metals at this point. June Comex gold futures were last up $2.20 an ounce at $1,306.20. July Comex silver was last up $0.167 at $16.54 an ounce.
The key data point for today was the national employment report for May, which came in at up 178,000. The report came in close to the forecast for up 187,000. The ADP report is the precursor to the more important Labor Department employment situation report on Friday morning. The precious metals and other markets paid little attention to today’s ADP.
There are still geopolitical concerns at mid-week. The U.S. continues to ratchet up the pressure on China, regarding trade issues. Worries about Italy’s future in the European Union are also causing anxiety among European investors. More developments on these key matters are likely yet this week, which could move markets, including the safe-haven metals.
The other key “outside market” today finds Nymex crude oil prices solidly higher on a corrective bounce after slumping to a six-week low on Tuesday. The recent steep downdraft suggests the market has put in at least a near-term top.
Technically, gold prices are still in a two-month-old downtrend on the daily bar chart, but just barely. This week’s price action will determine whether the downtrend continues or is negated. The gold bears 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 $1,332.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,286.80. First resistance is seen at last week’s high of $1,312.60 and then at $1,320.00. First support is seen at today’s low of $1,300.00 and then at this week’s low of $1,296.60. Wyckoff's Market Rating: 4.5
The silver bulls and bears are 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 today’s high of $16.58 and then at last week’s high of $16.74. Next support is seen at this week’s low of $16.31 and then at $16.19. Wyckoff's Market Rating: 5.0.
July N.Y. copper closed up 65 points at 306.90 cents today. Prices closed nearer the session high today after hitting a seven-week low early on. 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 308.00 cents and then at 310.00 cents. First support is seen at 305.00 cents and then at today’s low of 301.00 cents. Wyckoff's Market Rating: 5.0.