AM-PM Roundup
Gold down on weak China data, rise in U.S. bond yields
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(Kitco News) - Gold prices are lower in midday U.S. trading Wednesday, following some weak economic data out of China that hints of a slowing global economy that could crimp demand for the precious metals. A rise in U.S. Treasury yields is also a negative for the safe-haven metals. August gold was last down $10.00 at $1,971.50 and July silver was up $0.085 at $23.75.
China's exports fell more than expected in May, it was reported Wednesday. Exports declined 7.5% in U.S. dollar terms from a year earlier, missing consensus for a 1.8% drop. Imports fell a less-than- expected 4.5% in May, year-on-year, after being forecast down 8.1%. Reads a Wall Street Journal headline today: "China's trade slowdown points to global woes." The story said China's post-Covid economy is sputtering and global trade is "cooling rapidly" amid major central banks tightening their monetary policies. That has potentially negative demand implications for the raw commodity sector, including the metals.
Asian and European stock markets were mixed overnight. U.S. stock indexes are mixed near midday.
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The key outside markets today see the U.S. dollar index slightly weaker. Nymex crude oil prices are firmer and trading around $72.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.766%.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, August gold futures bulls have the overall near-term technical advantage amid recent choppy trading. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949.60. First resistance is seen at today's high of $1,986.50 and then at $2,000.00. First support is seen at 1,960.00 and then at this week's low of $1,953.80. Wyckoff's Market Rating: 6.0
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
July silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at $24.00 and then at today's high of $24.165. Next support is seen at today's low of $23.48 and then at week's low of $23.32. Wyckoff's Market Rating: 5.0.
July N.Y. copper closed down 35 points at 376.50 cents today. Prices closed near mid-range after hitting a four-week high early on. The copper bears still have the overall near-term technical advantage. However, a six-week-old downtrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 354.50 cents. First resistance is seen at today's high of 381.15 cents and then at 385.00 cents. First support is seen at Tuesday's low of 374.10 cents and then at this week's low of 368.60 cents. Wyckoff's Market Rating: 4.0.
