Gold Prices Up; Charts Still Bullish
(Kitco News) - Gold prices are moderately higher in early U.S. trading Monday. Trading has been choppy at higher levels recently, but the bulls still have the firm overall near-term technical advantage, and that continues to invite the chart-based traders to the long side of the market. August gold futures were last up $6.20 an ounce at 1,406.20. September Comex silver prices were last up $0.109 at $15.11 an ounce.
Asian and European stock markets were mostly weaker in quieter overnight trading. U.S. stock indexes are pointed toward modestly lower openings when the New York day session begins.
Last Friday’s strong U.S. jobs report has somewhat dented trader and investor enthusiasm on notions the Federal Reserve is now less likely to lower interest rates at its July monetary policy meeting. Friday’s jobs data rallied the U.S. dollar and pressured U.S. Treasury prices. Fed Chairman Jerome Powell speaks to the U.S. House of Representatives on U.S. monetary policy on Wednesday morning.
In overnight news, the Turkish lira is under pressure and dropped around 2% against the U.S. dollar after Turkey’s president fired the head of the Turkish central bank.
U.S. economic data due for release Monday is light and includes the employment trends index and consumer credit.
Technically, the gold bulls have the firm overall near-term technical advantage. A six-week-old uptrend is still in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the June high of $1,442.90. Bears' next near-term downside price breakout objective is pushing August futures prices below solid technical support at last week’s low of $1,384.70. First resistance is seen at the overnight high of $1,409.00 and then at $1,420.00. First support is seen at $1,400.00 and then at today’s low of $1,395.00. Wyckoff's Market Rating: 7.0
September silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.625 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at $15.25 and then at $15.37. Next support is seen at $15.00 and then at last week’s low of $14.915. Wyckoff's Market Rating: 5.0.