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Gold Firmer As Bulls Work To Stabilize Market

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(Kitco News) - Gold prices are modestly up in early U.S. dealings Thursday. Some short covering in the futures market is featured, following recent selling pressure. Still, buying interest remains squelched by a rally in world stock markets and by a rebounding U.S. dollar index late this week. Silver prices fell to a 12-month low overnight. August gold futures were last up $2.40 an ounce at $1,246.80. July Comex silver was last up $0.118 at $15.935 an ounce.

The feature in the marketplace late this week is U.S. President Trump in Europe meeting with European leaders, with a meeting with Russian President Vladimir Putin scheduled for next Monday. The marketplace will watch Trump’s meetings closely. The just-concluded NATO meeting was declared a success by Trump.

The just-released June U.S. consumer price index (CPI) report came in a up 0.1% versus the forecast of being up 0.2% from May. The June producer price index report, released on Wednesday morning, was also up 0.2% from May. These numbers are not deemed problematic for inflation and the markets did not show significant reactions to the data.

In overnight news, the European Commission projected the Euro zone inflation rate at 1.7% in 2018 and in 2019, which is up just slightly from their earlier forecasts.

The key “outside markets” today find Nymex crude oil prices firmer, on a corrective rebound from strong losses posted Wednesday, and are trading just below $71.00 a barrel.

Meantime, the U.S. dollar index is slightly higher on a corrective bounce from recent selling pressure.

Other U.S. economic data due for release Thursday includes the weekly jobless claims report, real earnings, monthly retail chain store sales numbers, and the monthly Treasury budget statement.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold bears have the firm overall near-term technical advantage amid a 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 $1,287.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at $1,250.00 and then at Wednesday’s high of $1,256.70. First support is seen at the overnight low of $1,241.40 and then at last week’s low of $1,238.80. Wyckoff's Market Rating: 2.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures bears have the firm overall near-term technical advantage as prices hit a 12-month low overnight. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.565 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.50. First resistance is seen at $16.00 and then at this week’s high of $16.26. Next support is seen at the overnight low of $15.78 and then at $15.50. Wyckoff's Market Rating: 2.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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