Gold Prices Near Steady, But Remain In Downtrend
(Kitco News) - Gold prices near steady levels on the day in early morning U.S. trading Monday. Bulls are working to stabilize the yellow metal after prices late last week fell to a six-month low. Gold prices remain in a 2.5-month-old downtrend on the daily charts. August gold futures were last down $0.30 an ounce at $1,270.40. July Comex silver was last down $0.054 at $16.405 an ounce.
World stock markets were mostly down overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. An escalating trade dispute between the U.S. and China—the world’s two largest economies—continues to rattle world markets, but not yet providing much support to safe-haven gold and silver markets. President Trump said during the weekend the U.S. may bar Chinese companies from investing in U.S. technology firms.
In overnight news, China’s central bank lowered its reserve requirement ratio for its banks by 0.5%, which is ostensibly a mild move to ease monetary policy.
The key “outside markets” today find the U.S. dollar index slightly up. Meantime, Nymex crude oil prices are higher and trading above $68.50 a barrel. The just-completed OPEC meeting that began Friday in Vienna, Austria saw cartel members raise their collective oil production by 1 million barrels a day, which the marketplace deemed bullish for crude oil.
U.S. economic data due for release Monday includes the Chicago Fed national activity index, new residential sales and the Texas manufacturing outlook survey.
Technically, gold bears have the firm overall near-term technical advantage amid the price downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close in August futures above solid 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 $1,251.90. First resistance is seen at $1,275.00 and then at $1,278.60. First support is seen at today’s low of $1,265.50 and then at last week’s low of $1,262.40. Wyckoff's Market Rating: 3.0
July silver futures bears have the firm 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 $16.50 and then at last week’s high of $16.635. Next support is seen at the overnight low of $16.29 and then at last week’s low of $16.19. Wyckoff's Market Rating: 3.0.