Gold Near Steady; Fresh Inputs Awaited
(Kitco News) - Gold and silver prices are trading near unchanged in quieter U.S. trading early today. Metals traders are looking for some new fundamental news to help drive prices. August Comex gold futures were last down $0.40 an ounce at $1,296.80. July Comex silver was last down $0.011 at $16.42 an ounce.
World stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward modestly higher openings when the New York day session begins. The U.S. stock indexes are at 2.5-month highs as traders and investors are in upbeat, risk-taking moods at present. The lack of risk aversion in the marketplace at present is bearish for safe-haven gold and silver markets.
So far early this week, the marketplace is mostly looking past U.S. tensions with its major trading partners that threaten to boil over into a worldwide trade war.
In overnight news, Australia’s central bank left its monetary policy unchanged at its regular meeting Tuesday.
The key “outside markets” today find Nymex crude oil prices slightly weaker and trading around $64.50 a barrel. The U.S. dollar index is weaker today on a corrective pullback from recent gains that last week pushed prices to a 10.5-month high.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the U.S. services purchasing managers index (PMI), the ISM non-manufacturing report on business, the IBD/TIPP economic optimism index, and the global services PMI.
Technically, August gold bears still have the slight overall near-term technical advantage. Prices are still in a seven-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above 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 $1,300.00 and then at Monday’s high of $1,302.30. First support is seen at last week’s low of $1,293.10 and then at the May low of $1,286.80. Wyckoff's Market Rating: 4.5
July silver futures bears have the slight 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 May low of $16.07. First resistance is seen at last week’s high of $16.615 and then at $16.74. Next support is seen at last week’s low of $16.31 and then at $16.19. Wyckoff's Market Rating: 4.5.