Gold Sees Good Safe-Haven Demand As U.S. Stock Market Melts Down
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(Kitco News) - Gold prices are holding solid gains in midday U.S. trading Monday. Prices are near daily highs and hit a four-week high above the key $1,300.00 level on safe-haven demand as the U.S. stock market is seeing its worst losses of 2019 and continuing last week’s downside pressure. June gold futures were last up $13.80 an ounce at $1,301.20. July Comex silver was last down $0.01 at $14.78 an ounce.
World stock markets were also mostly down overnight. The failure of the U.S. and China to reach a trade deal late last week and the resulting new tariffs put in place by the U.S., including retaliation from China announced today, have the world marketplace in a very downbeat mood to start the trading week. Trade officials from both countries will continue talking, however. Keener risk aversion in the marketplace generally works in favor of the safe-haven metals markets.
The marketplace is so far not being significantly impacted by news two Saudi oil tankers were attacked in the Strait of Hurmuz over the weekend. The attackers are apparently unknown. However, tensions between the U.S. and Iran have ratcheted up in recent weeks, with some speculating Iran may be behind the weekend attacks on the Saudi ships, which were not sunk but did sustain significant damage.
The key “outside markets” today see the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are lower and trading around $61.00 a barrel.
There was no major U.S. economic data released Monday but the pace picks up a bit on Tuesday.
Technically, June gold futures prices closed near the session high today and negated a downtrend on the daily bar chart. Gold bulls and bears are now back on a level overall near-term technical playing field but the bulls now have momentum on their side. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the April high of $1,314.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at $1,310.00 and then at $1,314.70. First support is seen at $1,290.00 and then at today’s low of $1,282.40. Wyckoff's Market Rating: 5.0
July silver prices closed nearer the session high today. The silver bears have the firm overall near-term technical advantage. A nearly three-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.15 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at $14.875 and then at $15.00. Next support is seen at today’s low of $14.615 and then at the May low of $14.57. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed down 565 points at 271.85 cents today. Prices closed nearer the session low today and hit a 3.5-month low. The copper bears have the overall near-term technical advantage and have momentum. Prices are in a three-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 285.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 256.10 cents. First resistance is seen at 275.00 cents and then at today’s high of 277.35 cents. First support is seen at today’s low of 270.90 cents and then at 270.00 cents. Wyckoff's Market Rating: 3.5.