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Gold Prices Pull Back Amid World Stock Mkt Rallies

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(Kitco News) - Gold prices are moderately lower in morning U.S. dealings Tuesday, on selling pressure tied to keener trader/investor risk appetite that has world stock markets in a rally mode. Gold bulls still have the overall near-term technical advantage but need to step up and show power very soon to keep it. August gold futures were last down $4.90 an ounce at $1,324.40. July Comex silver prices were last up $0.006 at $14.645 an ounce.

European and Asian stock indexes were mostly higher again overnight, led by solid gains in China shares. The Chinese government moved to further stimulate its economy by announcing major infrastructure projects. The move by China’s government is an effort to offset the negative economic effects of the ongoing trade war with the U.S. The U.S. stock indexes are also pointed toward firmer openings when the New York day session begins. The U.S. indexes have posted strong gains the past week and have bullish technical momentum on their side to suggest a test of the contract/record highs, or above.

The U.S. economic data point of the day is the producer price index report for May, which is expected to come in at up 0.1% from April. Very low inflation levels not only in the U.S. but most of the world are an element that could allow the Federal Reserve to lower U.S. interest rates as soon as this summer.

The key “outside markets” today see Nymex crude oil prices higher and trading just below $54.00 a barrel. The U.S. dollar index is slightly up, but is in a near-term price downtrend and there are chart clues the USDX has put in a near-term top. 

U.S. economic data due for release Tuesday includes the NFIB small business index, the Goldman Sachs and Johnson Redbook retail sales reports, the producer price index, the IDB/TIPP economic optimism index, and the USDA monthly supply and demand report for grains.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still have the overall near-term technical advantage but are fading a bit and need to show fresh power soon. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the June high of $1,352.70. Bears' next near-term downside price breakout objective is pushing August futures prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,333.80 and then at Monday’s high of $1,341.70. First support is seen at $1,320.00 and then at $1,310.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bears have the overall near-term technical advantage and have gained fresh power this week. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $15.15 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $14.265. First resistance is seen at $14.75 and then at $15.00. Next support is seen last week’s low of $14.565 and then at $14.50. Wyckoff's Market Rating: 3.0.

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