(Kitco News) – Gold prices are lower in early U.S. trading Thursday on some more normal profit taking from the shorter-term futures traders, and on chart consolidation after hitting a six-year high of $1,442.90 in August futures on Tuesday. August gold futures were last down $6.70 an ounce at 1,408.70. July Comex silver prices were last down $0.119 at $15.175 an ounce.
Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.
There are new developments in the U.S.-China trade war. Just ahead of the late-week meeting between U.S. President Trump and Chinese President Xi in Japan at the G20 confab, Xi has reportedly told Trump he’s ready to settle the trade war, but has laid out several conditions that Trump may not accept, including lifting sanctions on China telecommunications giant Huawei. So far today markets have not reacted much to this news, as traders are not sure if this is a positive or a negative for reaching a final deal. The outcome of the U.S.-China summit meeting is still very uncertain and could have major implications for many markets.
In other news, Bitcoin is posting strong losses of around $2,000 today after hitting a 17-month high Wednesday.
The key “outside markets” today see Nymex crude oil prices weaker and trading around $58.75 a barrel. Meantime, the U.S. dollar index is slightly up on a corrective bounce and some chart consolidation after hitting a three-month low Tuesday.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the third estimate of first-quarter GDP, pending home sales and the Kansas City Fed manufacturing survey.
Technically, the gold bulls still have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at this week’s high of $1,442.90. Bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at $1,400.00. First resistance is seen at the overnight high of $1,415.30 and then at $1,420.00. First support is seen at this week’s low of $1,403.60 and then at $1,400.00. Wyckoff’s Market Rating: 7.5
July silver futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.625. First resistance is seen at Wednesday’s high of $15.355 and then at the June high of $15.555. Next support is seen at $15.12 and then at $15.00. Wyckoff’s Market Rating: 6.0.
By Jim Wyckoff
For Kitco News