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Gold Prices Sink As US Stock Mkt Sees Strong Recovery

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(Kitco News) - Gold and silver prices are solidly lower in midday U.S. trading Thursday. Silver dropped to 5.5-month low. A strong 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 released today pushed metals prices lower from modest overnight losses. And a firmer U.S. dollar index today is also a negative for the precious metals markets. June gold futures were last down $11.30 an ounce at $1,286.50. July Comex silver was last down $0.267 at $14.54 an ounce.

The release of strong U.S. economic data today that included a solid rise in home sales, a very good reading from the Philadelphia Fed business survey, and weekly jobless claims solidly down all worked to push the U.S. dollar higher and help to rally U.S. equities.

A market feature this week is falling government bond yields due to concerns about slowing world economic growth. The U.S.-China trade war is mostly to blame for those worries. Bonds yields did rise a bit today following the stronger U.S. economic data.

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 higher and trading around $63.00 a barrel. 

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed nearer the session low today. A fledgling uptrend on the daily bar chart is still in place, but just barely now. Gold bulls and bears are back on a level overall near-term technical playing field but have faded and need to show fresh power soon. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,304.20. 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 $1,290.00 and then at $1,295.00. First support is seen at today’s low of $1,284.20 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 prices closed near the session low and hit a 5.5-month low today. The silver bears have the solid overall near-term technical advantage and gained fresh power today. A 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 $15.00 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 $14.75 and then at this week’s high of $14.865. Next support is seen at $14.50 and then at $14.35. Wyckoff's Market Rating: 2.5.

July N.Y. copper closed up 55 points at 274.90 cents today. Prices closed nearer the session low today. The copper bears still have the overall near-term technical advantage. Prices are in a four-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 today’s high of 277.75 cents and then at 280.00 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.

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.