Gold Sees Some Price Pressure As U.S. Equities Bounce
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(Kitco News) - Gold prices are moderately lower in midday U.S. trading Tuesday. Prices are seeing a normal downside correction after hitting a four-week high overnight. Still, the bulls are now in a much better technical posture following Monday’s good gains. June gold futures were last down $5.50 an ounce at $1,296.30. July Comex silver was last up $0.033 at $14.81 an ounce.
The U.S. stock market is seeing a good recovery today after solid losses Monday that drove the major indexes to six-week lows. World stock markets were mixed overnight, with European indexes mostly higher and Asian stocks mostly weaker. Many traders are now reckoning the U.S.-China trade war may have run its course, overall, regarding its bearish impact on the marketplace. A story from Barron’s today outlined the very minimal impact trade tariffs are having and will have on the U.S. And, President Trump today was sounding more upbeat on a U.S.-China trade deal being reached in the coming weeks.
Still, there has been technical damage inflicted on U.S. stock indexes recently, to suggest they have put in near-term tops and can now only trade sideways at best for at least the time being. That’s a good scenario for precious metals market bulls, as the safe-haven metals are a competing asset class with equities.
The key “outside markets” today see the U.S. dollar index firmer. The greenback bulls have faded a bit recently. Meantime, Nymex crude oil prices are higher and trading around $62.00 a barrel. There are technical clues the oil market has put in a near-term top.
Technically, June gold futures prices closed nearer the session low today. This week’s price action has negated a 2.5-month-old downtrend that was in place on the daily bar chart. Gold bulls and bears are on a level overall near-term technical playing field. 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 today’s high of $1,304.20 and then at $1,310.00. First support is seen at today’s low of $1,294.30 and then at $1,290.00. Wyckoff's Market Rating: 5.0
July silver futures prices closed near mid-range 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 this week’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 up 35 points at 272.25 cents today. Prices closed near mid-range today. Prices Monday hit a 3.5-month low. The copper bears have the overall near-term technical advantage. 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 this week’s high of 277.35 cents. First support is seen at this week’s low of 270.90 cents and then at 270.00 cents. Wyckoff's Market Rating: 3.5.