Gold price pausing as fresh fundamental inputs awaited
(Kitco News) - Gold prices are near steady in early U.S. trading Wednesday, in quieter summertime trading, as market participants are looking for fresh news to help drive the market. Sharply lower crude oil prices and a firmer U.S. dollar index at mid-week are keeping the metals market bulls timid. August gold futures were last up $0.90 at $1,839.60. July Comex silver futures were last down $0.308 at $21.46 an ounce.
Global stock markets were mostly down overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins, after posting solid gains Tuesday. It’s a risk-off trading day at mid-week, amid ongoing inflation, U.S. recession and geopolitical worries.
Inflation continues to run hot in Europe. The U.K. today reported its May consumer inflation was up 9.1%, which is a 40-year high.
The key outside markets today see Nymex crude oil prices solidly lower and trading around $104.75 a barrel. The U.S. dollar index is a bit firmer in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.218%.
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U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey and the Johnson Redbook weekly retail sales report.
Technically, the August gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the June high of $1,882.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,848.40 and then at $1,861.50. First support is seen at the overnight low of $1,824.50 and then at $1,815.00. Wyckoff's Market Rating: 3.5
July silver futures bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at the overnight high of $21.675 and then at $22.00. Next support is seen at the overnight low of $21.205 and then at $21.00. Wyckoff's Market Rating: 3.0.