(Kitco News) - Gold prices are posting strong gains in midday U.S. trading Thursday, on safe-haven demand amid elevated risk aversion in the general marketplace late this week. There are reports the U.S. government has ordered non-essential personnel out of parts of the Middle East amid heightened security concerns. Iran-U.S. nuclear talks are scheduled for this weekend in Oman. Reports said Israel is considering striking Iran’s nuclear facilities. Meantime, Iran said it is building a new nuclear facility and has threatened U.S. citizens in the Middle East if its nuclear operations were attacked. August gold was last up $66.30 at $3,410.10. July silver prices were last up $0.099 at $36.36.
The U.S. data point of the day saw the producer price index report for May come in at up just 0.1% versus expectations for up 0.2%, month-on-month. The core PPI (excluding food and energy) came in at up 0.1% and was forecast at up 0.3%, month-on-month. This tame PPI report followed a tame CPI report out on Wednesday. The tame inflation data was precious metals markets bullish because it gives the Federal Reserve more leeway to cut interest rates later this year.
The key outside markets today see the U.S. dollar index solidly down and hit a seven-week low. Nymex crude oil futures prices are slightly lower and trading around $68.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.361%.
Technically, August gold futures bulls have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $3,477.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,300.00. First resistance is seen at the June high of $3,427.70 and then at $3,450.00. First support is seen at $3,475.00 and then at today’s low of $3,358.50. Wyckoff's Market Rating: 7.5.
July silver futures bulls have the solid overall near-term technical advantage. Prices are trending higher on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $40.00. The next downside price objective for the bears is closing prices below solid support at $34.00. First resistance is seen at this week’s high of $37.03 and then at $37.50. Next support is seen at $36.00 and then at today’s low of $35.58. Wyckoff's Market Rating: 7.5.
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