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Gold Prices Pull Back As U.S. Equities Rebound, Upbeat U.S. Data Released

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(Kitco News) - Gold and silver prices are moderately lower in early-morning U.S. trading Thursday. A good rebound in the U.S. stock market this week has boosted trader and investor risk appetite, which is bearish for the safe-haven metals. A batch of stronger U.S. economic data just released pushed prices a bit lower from overnight levels. A firmer U.S. dollar index today is also a negative for the precious metals markets. June gold futures were last down $6.00 an ounce at $1,291.80. July Comex silver was last down $0.052 at $14.76 an ounce.

Gold extended its losses and hit new daily lows following the release of strong U.S. economic data that included a solid rise in home sales and a very good reading from the Philadelphia Fed business survey. Weekly jobless claims were also solidly down.

World stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Following Monday’s downdraft that pushed the U.S. stock indexes to six-week lows, the indexes have made solid recoveries.

A market feature this week is rising government bond yields due to concerns about slowing world economic growth. The U.S.-China trade war is mostly to blame for those worries.

On the U.S.-China trade war front, President Trump on Wednesday signed an executive order that essentially bans some U.S. telecommunications equipment from Chinese companies.

A U.S.-China trade theme continues in the world marketplace: one day the two sides are upbeat on a deal getting done; the next day their tone is sour. Such will keep the markets very uncertain on the matter.

The other key “outside market” today sees Nymex crude oil prices are firmer and trading around $62.50 a barrel.  

U.S. economic data due for release today includes the weekly jobless claims report, the Philadelphia Fed business survey, and new residential construction.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls and bears are on a level overall near-term technical playing field. Bulls are working on a fledgling price uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid 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 $1,300.00 and then at this week’s high of $1,304.20. First support is seen at $1,290.00 and then at this week’s low of $1,282.40. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the firm overall near-term technical advantage. Prices are in a nearly three-month-old downtrend 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 this week’s high of $14.865 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.

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.