Gold, Silver Bulls Work To Stabilize Prices
(Kitco News) - Gold prices are modestly higher and silver prices near steady in early U.S. trading Monday. Bulls are trying to “right the ship” after both metals dropped to 12-month lows late last week. Scant risk aversion in the marketplace the past several weeks has traders and investors staying clear of the safe-haven metals. August gold futures were last up $2.80 an ounce at $1,243.80. September Comex silver was up $0.015 at $15.83 an ounce.
World stock markets were mixed overnight. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. U.S. stock indexes are at multi-month highs, to underscore the “risk-on” trader mentality in the marketplace at present.
There is little risk aversion among global traders and investors despite a trade war between the world’s two largest economies. This is keeping a flow of monies into world stock markets, especially in light of a floundering raw commodity sector at present, due to the U.S.-China major trade dispute. Gold and silver prices have preferred to follow their raw commodity counterparts recently.
In overnight news, China’s gross domestic product growth in the second quarter was reported at 6.7%, year-on-year, which is lower than the 6.8% growth rate posted in the first quarter. The growth rate is also about in line with the Chinese government’s 6.5% annual growth target.
The world marketplace is watching for news from the summit meeting between U.S. President Trump and Russian President Putin in Finland today.
U.S. economic data due for release Monday includes retail sales, the Empire State manufacturing survey, and manufacturing and trade inventories.
Technically, gold bears have the solid 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 last week’s high of $1,266.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at Friday’s high of $1,248.50 and then at $1,250.00. First support is seen at Friday’s low of $1,236.20 and then at $1,230.00. Wyckoff's Market Rating: 2.0
September 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 $16.50 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 last week’s high of $16.26. Next support is seen at Friday’s low of $15.70 and then at $15.50. Wyckoff's Market Rating: 2.0.