Gold sees normal downside correction in existing price uptrend
(Kitco News) - Gold prices are moderately lower in midday U.S. trading Thursday, on a normal corrective pullback and some profit-taking by the futures traders. Gold and silver markets are still in solid price uptrends on the daily bar charts, suggesting the path of least resistance for prices will remain sideways to higher. Gold on Wednesday hit a 4.5-month high. June gold futures were last down $7.80 at $1,893.40 and July Comex silver was last up $0.048 at $27.90 an ounce.
A slew of U.S. economic data released Thursday morning had no significant impact on the precious metals markets.
Global stock markets were narrowly mixed or flat overnight. U.S. stock indexes are mixed at midday. The inflation discussion in the marketplace has ebbed a bit this week, as Federal Reserve officials in their comments to the public recently have apparently done a good job of assuaging trader and investor worries about rising prices.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are firmer and trading around $66.55 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.65%.
Technically, June gold futures bulls still have the solid overall near-term technical advantage. A two-month-old price uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the January high of $1,969.10. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,850.00. First resistance is seen at today’s high of $1,903.90 and then at this week’s high of $1,913.30. First support is seen at $1,885.00 and then at this week’s low of $1,873.20. Wyckoff's Market Rating: 7.5
July silver futures bulls have the firm overall near-term technical advantage. A two-month-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $30.015 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.78. First resistance is seen at $28.00 and then at this week’s high of $28.34. Next support is seen at this week’s low of $27.545 and then at last week’s low of $27.265. Wyckoff's Market Rating: 7.0.
July N.Y. copper closed up 1,290 points at 465.80 cents today. Prices closed near the session high today and bulls regained some momentum. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the May high of 488.80 cents. The next downside price objective for the bears is closing prices below solid technical support at 437.00 cents. First resistance is seen at 470.00 cents and then at 475.00 cents. First support is seen at 460.00 cents and then at today’s low of 450.15 cents. Wyckoff's Market Rating: 7.5.