Bearish technicals limit buying interest in gold, silver
Gold and silver prices are modestly down in midday U.S. trading Wednesday, with gold notching a 3.5-month low overnight. A lack of markets-moving fundamental news at mid-week has traders focused more on the analytical charts for the precious metals, which are leaning bearish. August gold was last down $3.50 at $1,920.30 and July silver was down $0.095 at $22.865.
Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda took part in a panel discussion at an ECB forum on central banking that took place in Portugal today. The central bankers made no surprising comments that were significant markets-movers.
Asian and European stock markets were mixed overnight. U.S. stock indexes are mixed at midday. Risk aversion has eased at mid-week following the weekend insurrection in Russia that was quickly quelled. Quieter summertime trading ahead of the major U.S. Independence Day holiday next Tuesday seems to the feature at present.
State Street Global Advisors sees healthy demand for gold and investors are getting younger
The key outside markets today see the U.S. dollar index solidly higher. Nymex crude oil prices are solidly up and trading around $69.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.731%.
Technically, August gold futures prices hit a 3.5-month low today. Bears have the overall near-term technical advantage. Prices are in a seven-week-old downtrend on the daily bar chart. 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 $1,900.00. First resistance is seen at $1,930.00 and then at this week’s high of $1,943.40. First support is seen at today’s low of 1,911.40 and then at $1,900.00. Wyckoff's Market Rating: 4.0.
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July silver futures bears have the overall near-term technical advantage. A choppy, seven-week-old price downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at this week’s high of $23.15 and then at $23.50. Next support is seen at this week’s low of $22.435 and then at the June low of $22.14. Wyckoff's Market Rating: 4.0.
July N.Y. copper closed down 470 points at 372.35 cents today. Prices closed nearer the session low today and hit a three-week low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.70 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 278.10 cents and then at this week’s high of 383.60 cents. First support is seen at today’s low of 369.60 cents and then at 365.00 cents. Wyckoff's Market Rating: 4.0.
By
Jim Wyckoff
For Kitco News
Tim Moseley