Gold, silver succumb to mild profit-taking pressure
(Kitco News) - Gold and silver prices are modestly down in midday U.S. trading Tuesday, on some routine profit taking from the shorter-term futures traders. Still, the sellers are constrained by the still-bullish technical chart postures in place for both metals. However, the buyers of the safe-haven metals are tentative at present amid little risk aversion in the global market place. August gold futures were last down $4.40 at $1,893.20 and July Comex silver was last down $0.273 at $27.745 an ounce.
Global stock markets were mixed in quiet overnight trading. U.S. stock indexes are narrowly mixed at midday. Risk aversion in the marketplace is scant at present due in part to no major geopolitical developments in play. Such can change quickly, however.
Traders are awaiting the U.S. economic data point of the week, which will be Thursday morning’s consumer price index report for May, which is expected to come in at up 0.5% from April and up 4.7%, year-on-year. Traders and investors continue their buzz regarding the prospects for inflation to heat up to uncomfortable levels in the coming months. Rising raw commodity prices the past few months are an ominous sign that inflation could become problematic.
The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil prices are firmer and trading around $69.75 a barrel after hitting a 2.5-year high of $70.00 on Monday. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.531%.
Technically, August gold futures bulls still have the firm overall near-term technical advantage. A nine-week-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 June high of $1,919.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,906.90 and then at $1,912.30. First support is seen at this week’s low of $1,883.70 and then at $1,866.70. Wyckoff's Market Rating: 7.0
July silver futures bulls have the overall near-term technical advantage. However, a nine-week-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $28.90 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at today’s high of $28.12 and then at $28.37. Next support is seen at this week’s low of $27.595 and then at $27.31. Wyckoff's Market Rating: 6.5.
July N.Y. copper closed up 170 points at 454.35 cents today. Prices closed near the session high today. The copper bulls have the overall near-term technical advantage. However, a four-week-old downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 470.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at 460.00 cents and then at 462.05 cents. First support is seen at last week’s low of 442.95 cents and then at 440.00 cents. Wyckoff's Market Rating: 7.0.