Gold Prices Up As Charts Remain Bullish
(Kitco News) - Gold prices are moderately higher in early U.S. trading Monday. The charts remain bullish for the yellow metal, suggesting the path of least resistance for prices will remain sideways to higher in the near term. The metals are also still feeling the bullish effects of major central banks recently sounding very dovish on their monetary policies. August gold futures were last up $3.80 an ounce at 1,416.20. September Comex silver prices were last up $0.134 at $15.37 an ounce.
Asian and European stocks were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session beings, and at record and contract highs.
In overnight news, there was some downbeat economic news coming out of China, as its second-quarter gross domestic product rose by 6.3%, year-on-year, for the slowest growth pace in 27 years. This is leading to ideas China’s central bank will act to further stimulate the world’s second-largest economy. However, the weaker GDP report was somewhat offset by industrial production data for June that came out better than expected, at up 6.3%, year-on-year.
There were no significant developments over the weekend on the geopolitical fronts.
U.S. economic data due for release Monday is light and includes the Empire State manufacturing survey. The economic data pace really picks up the pace starting Tuesday.
Technically, the gold bulls have the firm overall near-term technical advantage. A seven-week-old uptrend is 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 the July low of $1,384.70. First resistance is seen at today’s high of $1,421.60 and then at $1,425.00. First support is seen at today’s low of $1,411.20 and then at $1,400.00. Wyckoff's Market Rating: 7.5
September silver futures bulls have the slight overall near-term technical advantage. 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 $15.515 and then at $15.625. Next support is seen at the overnight low of $15.185 and then at $15.00. Wyckoff's Market Rating: 5.5.