(Kitco News) – Gold prices are moderately down in early-morning U.S. trading Tuesday. Silver prices are also down and hit a six-month low today. Once the New York futures markets opened, selling pressure intensified. A higher U.S. dollar index and firmer U.S. stocks are putting downside pressure on the gold and silver markets. Safe-haven gold bulls are watching some elements that are not quite on the front burner of the marketplace, but may be soon. June gold futures were last down $6.10 an ounce at $1,277.50. July Comex silver prices were last down $0.20 at $14.35 an ounce.
World stock markets were mostly down overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins, after trading weaker overnight.
There are several matters on the minds of traders and investors following the long U.S. holiday weekend. The U.S.-China trade war continues with no agreement in sight and both countries appearing to dig in their heels as a trade agreement anytime soon appears unlikely.
European elections last weekend produced gains in the populist parties in the U.K., while Greece’s prime minister said he will call for a general election in an effort to lower taxes. It seems that every couple of years, during the summertime, that political turmoil in the European Union moves closer to the front burner of the world marketplace.
President Trump downplayed recent test missile launches from North Korea, and has also been quieter on the U.S.-Iran staredown. However, these two issues could quickly heat up.
The key “outside markets” today see the U.S. dollar index trading higher, while Nymex crude oil prices are firmer and trading just above $59.00 a barrel. The greenback has been strong recently and the USDX is not far below its recent two-year high. Meantime, crude oil bulls are working to stabilize prices after last week’s steep downdraft that shaved about $6.00 off the price of a barrel of crude.
U.S. economic data due for release Tuesday includes the quarterly house price index, the S&P-Case-Shiller home price index, the consumer confidence index and the Texas manufacturing outlook survey.
Technically, the gold bears still the overall near-term technical advantage. Prices are in a more-than-three-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. 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 last week’s high of $1,287.10 and then at $1,290.00. First support is seen at $1,275.00 and then at Thursday’s low of $1,272.10. Wyckoff’s Market Rating: 4.0
July silver futures bears have the solid overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at $14.50 and then at last week’s high of $14.635. Next support is seen at $14.25 and then at $14.175. Wyckoff’s Market Rating: 2.0.
By Jim Wyckoff
For Kitco News