Gold Bulls Flex Their Muscles As Persian Gulf Tensions Rise
(Kitco News) - Gold prices are firmly higher in midday U.S. trading Thursday, boosted on safe-haven buying interest on news of another attack on big ships in the Persian Gulf region. August gold futures were last up $6.90 an ounce at $1,343.70. July Comex silver prices were last up $0.127 at $14.88 an ounce.
The marketplace is a bit uneasy late this week after reports two more ships in the Persian Gulf area (this time in the Gulf of Oman) were attacked by smaller gunboats, and/or possibly even a torpedo. U.S. Navy ships are reportedly now protecting some oil tankers in the region. Oil prices are higher today on the news. Right now tensions in markets are not real high, but this situation could escalate very quickly if Iran and the U.S. have a direct military confrontation. Gold prices would probably spike sharply higher in such a case.
Gold gained today despite European and Asian stock indexes that were mostly firmer. The U.S. stock indexes are also modestly higher at midday. Notions of more accommodative monetary policies from the world’s major central banks, amid generally very low inflationary pressures globally, are supporting world stock markets recently. That’s also supportive for the meteals.
The key “outside markets” today see Nymex crude oil prices higher and trading around $52.25 a barrel, on the Oman Gulf news. Still, worldwide supply and demand fundamentals for crude oil favor the bears. Meantime, the U.S. dollar index is slightly up in early-afternoon U.S. trading.
In other overnight news, Switzerland’s central bank held its monetary policy steady, but did signal rate cuts are possible at future central bank monetary policy meetings.
Technically, August gold futures prices closed near the session high today. The bulls have the firm overall near-term technical advantage and are having a good week. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,361.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,310.00. First resistance is seen at $1,350.00 and then at the June high of $1,352.70. First support is seen at today’s low of $1,335.90 and then at Wednesday’s low of $1,329.80. Wyckoff's Market Rating: 7.0.
July silver futures prices closed near the session high today. The silver bears have the 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 $15.00 and then at $15.15. 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 up 40 points at 265.85 cents today. Prices closed near the session high 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 Wednesday’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.