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Gold Prices Down; More Pressure Likely

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Kitco Daily Recap

(Kitco News) - Gold prices are moderately down and hit a two-week low in midday U.S. trading Tuesday. So far this week, trader and investor risk appetite is more upbeat, which is bearish for the safe-haven gold and silver markets. The near-term technical posture has deteriorated for gold and silver recently, suggesting more downside price pressure in the near term, including new lows for the year in both metals. June gold futures were last down $3.90 an ounce at $1,273.40. July Comex silver prices hit a 5.5-month low today and were last down $0.015 at $14.43 an ounce.

For the time being, the world marketplace has put the U.S.-China trade war and its negative ramifications on world economies on the back burner. U.S. and world stock markets have moved mostly higher so far this week.

Still, the Paris-based OECD think tank today reported that trade disputes between the U.S. and its trading partners have weakened global business investment. The OECD said business investment in 2019 will increase by 1.75% compared to a growth rate of 3.5% in both 2017 and 2018.

The key “outside markets” today see the U.S. dollar index firmer and not far below this year’s high, which is a two-year high. Meantime, Nymex crude oil prices are also weaker and trading just below $63.00 a barrel. These two markets were in a slightly bearish daily posture for the metals today.

Technically, June gold futures prices closed near mid-range. The bears now have the overall near-term technical advantage and have regained downside momentum to suggest new near-term lows in the offing. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. 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 this week’s high of $1,278.80 and then at $1,287.00. First support is seen at today’s low of $1,269.00 and then at $1,267.30. Wyckoff's Market Rating: 4.0

Live 24 hours gold chart [Kitco Inc.]

July silver futures prices closed nearer the session high and hit a 5.5-month low again today. The silver bears have the solid overall near-term technical advantage. 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 $14.50 and then at $14.75. Next support is seen at today’s low of $14.35 and then at $14.30. Wyckoff's Market Rating: 2.0.

Live 24 hours silver chart [ Kitco Inc. ]

July N.Y. copper closed down 105 points at 271.50 cents today. Prices closed nearer the session low and hit a 3.5-month low today. The copper bears 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 this week’s high of 275.05 cents and then at last week’s high of 277.75 cents. First support is seen at today’s low of 270.55 cents and then at 268.00 cents. 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.