Gold Prices Near Sessions Highs As Global Equities Slump Lower
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(Kitco News) - Gold prices are posting moderate gains and are near their session highs in early-morning U.S. trading Thursday. . Slumping world stock markets today have put a mild safe-haven bid into the gold and silver markets. However, a push in the U.S. dollar index to a two-year high overnight and slumping crude oil prices are limiting the upside in the precious metals markets. June gold futures were last up $8.60 an ounce at $1,282.60. July Comex silver prices were last up $0.101 at $14.55 an ounce.
World stock markets were mostly down overnight. U.S. stock indexes are also pointed toward solidly lower openings when the New York day session begins. Risk aversion has again surfaced late this week. Parliamentary elections in the U.K. and The Netherlands get 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 weight on the British pound.
A push in the U.S. dollar index to a two-year high overnight and slumping crude oil prices—normally bearish daily elements for the metals--are not impacting the precious metals markets much so far in morning dealings.
Simmering closer to the front burner of the world marketplace today is the U.S.-China trade war that may or may not come to resolution in the next few weeks.
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.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the U.S. flash services and manufacturing purchasing managers' indexes, new residential sales and the Kansas City Fed manufacturing survey.
Technically, the gold bears have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close in June futures above solid 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 this week's low of $1,269.00 and then at $1,267.30. Wyckoff's Market Rating: 4.0
July silver futures bears have the solid overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 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 $14.555. Next support is seen at this week's low of $14.35 and then at $14.30. Wyckoff's Market Rating: 2.0.