Gold Down Sharply As Risk Appetite Upticks
(Kitco News) - Gold prices are solidly lower in midday U.S. trading Monday. The safe-haven metal has been deflated by weekend geopolitical events that have at least temporarily assuaged the world marketplace and in turn pushed global stock markets higher. August gold futures were last down $21.20 an ounce at 1,392.70. July Comex silver prices were last down $0.098 at $15.155 an ounce.
The weekend Group of 20 meetings taking place in Japan featured U.S. President Trump and Chinese President Xi meeting. Trump backed off on some of his threatened sanctions, while Xi said China would buy more U.S. agricultural products. Both sides agreed to restart trade negotiations. This was deemed a positive by the marketplace, but most agree much heavy lifting needs to be done to get a complete and final U.S.-China trade agreement.
Also, President Trump made a surprise visit to North Korea over the weekend and met with North Korean leader Kim Jong Un. The U.S. and North Korea said they would resume talks on North Korea’s nuclear program.
There is a developing story in Hong Kong that could impact the marketplace. There is major protesting going on in Hong Kong that appears to be escalating. Hong Kong residents are protesting mainland China’s government rule of the city. Also, reports today said Iran claims to have purposely produced more uranium that a United Nations deal with Iran allows. This appears to be another taunt toward the U.S. from Iran.
The key “outside markets” today see Nymex crude oil prices higher and hitting a five-month high. The OPEC oil cartel over the weekend reached a deal to keep its production curtailed. Meantime, the U.S. dollar index is solidly higher in midday U.S. trading.
Technically, August gold futures prices closed near mid-range. The bulls still have the overall near-term technical advantage amid a five-week-old uptrend on the daily bar chart. However, the bulls need to show fresh power very soon to keep the price uptrend alive. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,408.60—the top of today’s downside price gap on the daily bar chart. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,363.00. First resistance is seen at $1,400.00 and then at $1,408.60. First support is seen at today’s low of $1,384.70 and then at $1,380.00. Wyckoff's Market Rating: 6.5.
July silver futures prices closed near mid-range today. The silver bulls have the overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart, but just barely and the bulls need to show fresh power soon. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.555 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at $15.355 and then at the June high of $15.555. Next support is seen at today’s low of $15.09 and then at $15.00. Wyckoff's Market Rating: 6.0.
July N.Y. copper closed down 235 points at 268.20 cents today. Prices closed near the session low today and scored a bearish “outside day” down on the daily bar chart. The copper bulls and bears are on a level overall near-term technical playing field. 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 June low of 259.95 cents. First resistance is seen at 270.00 cents and then at 272.50 cents. First support is seen at today’s low of 267.80 cents and then at 265.00 cents. Wyckoff's Market Rating: 5.0.