Gold prices are slightly lower in early-morning US trading yesterday. Prices did poke to a four-week high overnight.
The yellow metal is seeing a normal corrective pullback following Monday’s good gains, which put the bulls in a much better technical posture. June gold futures were last down $2,00 an ounce at $1,299.80. July Comex silver was last up $0,038 at $14,815 an ounce.
World stock markets were mixed overnight, with European indexes mostly higher and Asian stocks mostly weaker. US stock indexes are pointed toward higher openings when the New York day session begins. The world stock markets are trying to stabilise following Monday’s rout in the wake of the failed US trade talks and the imposition of new tariffs by the US and China against each other.
There has been technical damage inflicted on US stock indexes to suggest they have put in near-term tops and can now only trade sideways at best for at least the time being. That’s good news for precious metals market bulls, as the safe-haven metals are a competing asset class with equities.
The key “outside markets” see the US dollar index firmer. The greenback bulls have faded a bit recently. Meantime, Nymex crude oil prices are higher and trading around $62,00 a barrel. There are technical clues the oil market has put in a near-term top.
US economic data due for release yesterday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, and import and export prices. Technically, the gold bulls and bears are back on a level overall near-term technical playing field. A nearly three-month-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,314.70.
Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at the overnight high of $1,304.20 and then at $1,310.00. First support is seen at the overnight low of $1,296.60 and then at $1,290.00. Wyckoff’s Market Rating: 5.0
July silver futures bears have the firm overall near-term technical advantage. Prices are still in a nearly three-month-old downtrend on the daily bar chart. — Kitco News.