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Gold erases overnight price losses on bullish data

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(Kitco News) - Gold prices are near steady in early U.S. trading Thursday and have taken back moderate overnight losses after some friendly U.S. and Euro zone economic data. August gold futures were last up $0.90 at $1,804.30 and September Comex silver was last down $0.10 at $25.155 an ounce.

The just-released U.S. jobless claims report showed a decline of 51,000 in claims, to 419,000, which was higher than the 350,000 in new claims expected.

Traders Thursday are also focused on the regular monetary policy meeting of the European Central Bank. The ECB left its monetary policy unchanged and said inflation is still running well below the bank's target rate. The ECB said it will keep monetary policy easy and maybe easier until the target inflation rate of 2.0% is reached. The ECB said it will also step up its bond buying program. ECB President Lagarde said that inflationary pressures have recently subsided.

The above two data sets lean friendly for metals market prices.

Global stock markets were mostly higher overnight. The U.S. stock indexes are pointed toward firmer openings when the New York day session begins. Upbeat U.S. corporate earnings reports this week have buoyed investor hopes.

The key outside markets today see the U.S. dollar index firmer after hitting a 3.5-month high on Wednesday. Nymex crude oil futures prices are firmer and trading around $71.00 a barrel. Oil prices have made a good recovery this week after falling to a five-week low on Monday. The yield on the U.S. Treasury 10-year note is presently fetching 1.29%.

Other U.S. economic data due for release Thursday includes the Chicago Fed national activity index, existing home sales, leading economic indicators, and the Kansas City Fed manufacturing survey.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold futures bulls have lost their slight overall near-term technical advantage as  a price uptrend on the daily bar chart has been negated. Bulls' next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at the overnight high of $1,804.30 and then at Wednesday's high of $1,814.40. First support is seen at $1,791.00 and then at $1,785.00. Wyckoff's Market Rating: 5.0.

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the firm overall near-term technical advantage as prices have this week seen a bearish downside "breakout" from a sideways trading range. Silver bulls' next upside price objective is closing September futures prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.825. First resistance is seen at the overnight high of $25.365 and then at $25.58. Next support is seen at this week's low of $24.79 and then at $24.50. Wyckoff's Market Rating: 3.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.