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Gold Prices Pop On Safe-Haven Demand

Kitco News

(Kitco News) - Gold prices are posting good gains and are near their session highs in midday U.S. trading Thursday. Slumping world stock markets and crude oil prices today have put a safe-haven bid into the gold and silver markets. June gold futures were last up $11.10 an ounce at $1,285.20. July Comex silver prices were last up $0.166 at $14.615 an ounce.

World stock markets were mostly down overnight. U.S. stock indexes are sharply lower at midday. Risk aversion has again surfaced late this week. Renewed worries about a prolonged U.S.-China trade war following new harsh rhetoric coming out of China are featured today. However, traders and investors are also eyeing parliamentary elections in the U.K. and The Netherlands that got under way Thursday, with the populist parties (euroskeptics) possibly doing well. Other European countries’ election results will be announced Sunday. The U.K. Brexit issue that remains unresolved amid Prime Minister Theresa May’s planned departure continues to weigh on the British pound.

A big drop in oil prices of around $5.00 a barrel the past two days have also helped to boost the safe-haven metals, even though weaker oil prices generally would be considered a bearish “outside market” force for the metals.

The U.S. dollar index hit a two-year high early today, but then backed off on some profit taking.

The U.S.’s more aggressive stance against Iran in recent weeks is another matter that could quickly elevate trader and investor tensions. A U.S. naval task force is in the Persian Gulf region.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed nearer the session high. The bears still have the slight overall near-term technical advantage. 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 today’s high of $1,277.10 and then at $1,290.00. First support is seen at $1,280.00 and then at today’s low of $1,272.10. Wyckoff's Market Rating: 4.5.

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures prices closed near the session high on more short covering and bargain hunting after hitting a 5.5-month low on Tuesday. 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 $14.75 and then at $14.87. Next support is seen at $14.50 and then at today’s low of $14.40. Wyckoff's Market Rating: 2.5.

July N.Y. copper closed up 45 points at 268.30 cents today. Prices closed near the session high and did hit another 3.5-month low early on today. The copper bears have the firm overall near-term technical advantage. Prices are in a steep 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 270.00 cents and then at Wednesday’s high of 271.90 cents. First support is seen at today’s low of 265.45 cents and then at 262.50 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.