Make Kitco Your Homepage

Gold Gains As Global Stocks Back Off A Bit

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - Gold prices are moderately higher in early-afternoon U.S. trading Wednesday. At mid-week there is somewhat heightened trader/investor risk aversion, as evidenced by lower world stock markets today. However, gold prices did move down from their daily highs as the U.S. dollar index pushed higher today. August gold futures were last up $5.20 an ounce at $1,336.50. July Comex silver prices were last up $0.01 at $14.75 an ounce.

European and Asian stock indexes were mostly lower overnight. The U.S. stock indexes are weaker at midday. The U.S. indexes at mid-week have ended an impressive rally streak that lifted prices well up from the early-June three-month lows.

It appears that global economic growth and world trade concerns are more on traders’ and investors’ mind at mid-week, putting them in a mood for buying safe-haven metals and selling equities.

Today’s U.S. consumer price index report for May came in at up 0.1% from April, which was right in line with market expectations. The CPI rose 0.3% last month. Very low worldwide inflation levels in major economies is giving central bankers more leeway to ease their monetary policies.

In overnight news, China’s May consumer price index hit a 15-month high, at up 2.7%, year-on-year. The CPI was up 2.5% in April. Food prices led the rise in CPI, with pork prices up 18%.

The key “outside markets” today see Nymex crude oil prices lower and trading just below $52.00 a barrel, on world economic growth worries. The U.S. dollar index is up today but is still in a near-term price downtrend and there are chart clues the USDX has put in a near-term top. 

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed near mid-range today. The bulls have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the June high of $1,352.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,310.00. First resistance is seen at today’s high of $1,342.30 and then at $1,350.00. First support is seen at today’s low of $1,329.80 and then at this week’s low of $1,323.60. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures prices closed nearer the session low today. The silver bears have the firm overall near-term technical advantage. 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 today’s high of $14.86 and then at $15.00. Next support is seen at this week’s low of $14.625 and then at last week’s low of $14.565. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed down 195 points at 265.15 cents today. Prices closed near mid-range today. The copper bears have the solid overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 277.75 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 267.30 cents and then at this week’s  high of 270.20 cents. First support is seen at this week’s low of 262.55 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.0.

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.