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Gold sees routine downside correction but up from daily lows

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(Kitco News) Gold prices are slightly down in midday U.S. trading Tuesday, but off the daily lows, on a normal downside correction and some profit-taking pressure from the shorter-term futures traders. Positive technical charts and still-worrisome geopolitical elements are still driving the gold and silver markets, suggesting still more upside is likely. August gold futures were last down $3.10 an ounce at $1,811.10. September Comex silver prices were last down $0.238 at $19.55 an ounce. 

Global stock markets were mostly down in overnight trading. The U.S. stock indexes are mixed at midday. It’s a busy week for the marketplace, as corporate earnings, central bank meetings and GDP data from China are due. Big banks’ earnings are out today, including JP Morgan, Wells Fargo and Citigroup. U.S. traders and investors are keeping a wary eye on the spread of Covid-19 cases in the country, as California on Monday moved to again lock down indoor businesses.

China, the world’s second-largest economy, Tuesday reported its imports of U.S. goods increased 11.3% in June, year on year, after a 13.5% decline in May. Chinese exports to the U.S. rose 1.4% in the period, versus a 1.3% drop in May. China’s imports from the rest of the world were up 2.7% in June, year on year, following a drop of 16.7% in May. China’s overall exports were up 0.5% in June versus a 3.3% drop in May. These latest trade numbers from China were stronger than expected and highlight the rapid economic recovery China has seen from the pandemic lockdowns.

The important outside markets today see Nymex crude oil prices firmer and trading around $40.35 a barrel. The U.S. dollar index is weaker at midday today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.63% level. 

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,779.20. First resistance is seen at Monday’s high of $1,818.80 and then at $1,825.50. First support is seen at today’s low of $1,791.10 and then at $1,779.20. Wyckoff's Market Rating: 8.5

Live 24 hours gold chart [Kitco Inc.]

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at Monday’s high of $19.81 and then at $20.00. Next support is seen at the overnight low of $19.24 and then at this week’s low of $19.08. Wyckoff's Market Rating: 8.5. 

Live 24 hours silver chart [ Kitco Inc. ]

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