Gold erases early losses at midday
(Kitco News) Gold prices are trading near steady in midday U.S. trading Wednesday, as the bulls once again stepped in to buy early weakness in a market that is still strongly bullish on the charts. Silver prices are solidly up and hit another 11-month high. August gold futures were last up $0.80 an ounce at $1,814.20. September Comex silver prices were last up $0.205 at $19.735 an ounce.
Global stock markets were mostly up Wednesday. The U.S. stock indexes are mixed at midday. The global marketplace at mid-week is mostly upbeat on reports that a Covid-19 vaccine trial by drug firm Moderna has produced successful results in creating robust antibodies for all of its recipients. This good news is usurping the latest U.S.-China developments that saw President Trump outline in a news conference late Tuesday several steps to further sanction China, including removing Hong Kong’s favored trade status. China immediately vowed retaliation. Asian shares were mostly lower on the rising U.S-China tensions.
The important outside markets today see Nymex crude oil prices higher and trading around $40.60 a barrel. There is an OPEC meeting beginning that most expect will see the cartel keep some form of its present production-cut quota. The U.S. dollar index is lower and hit a five-week low today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.64% 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 today’s high of $1,819.50 and then at $1,825.50. First support is seen at today’s low of $1,805.00 and then at $1,800.00. Wyckoff's Market Rating: 8.5
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 today’s high of $19.815 and then at $20.00. Next support is seen at today’s low of $19.525 and then at Tuesday’s low of $19.24. Wyckoff's Market Rating: 8.5.