(Kitco News) – Gold prices are modestly down in early U.S. trading Thursday, on some mild profit-taking pressure from recent gains. Silver bulls are on a roll this week and prices hit a nearly four-month high overnight. August gold futures were last down $1.10 an ounce at 1,422.00. September Comex silver prices were last up $0.179 at $16.15 an ounce.
Silver prices have gained almost $1.00 this week on chart-based buying and perceived bargain hunting. Look for more upside in the metal in the near term, as this week’s advance in prices is getting the attention of the general investing public.
Asian and European stocks were mostly weaker overnight, on some disappointing earnings reports. U.S. stock indexes are pointed toward weaker openings when the New York day session beings, on some mild profit taking after hitting record and contract highs earlier this week.
There are also declining expectations the U.S. and China can come to a trade agreement anytime soon, following recent downbeat rhetoric coming from both sides. Reports just out say China is demanding that the U.S. ease restrictions on its technology giant, Huawei. This situation has put a bit of a damper on global stock market bulls and is slightly supportive for safe-haven gold and silver.
The key “outside markets” today see Nymex crude oil prices firmer and trading around $57.00 a barrel. Meantime, the U.S. dollar index is near steady.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, and leading economic indicators.
Technically, the gold bulls have the firm overall near-term technical advantage. A seven-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the June high of $1,442.90. Bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at the July low of $1,384.70. First resistance is seen at today’s high of $1,431.90 and then at $1,442.90. First support is seen at $1,401.00 and then at $1,400.00. Wyckoff’s Market Rating: 7.0
September silver futures bulls have the firm overall near-term technical advantage and have momentum on their side. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at this year’s high of $16.47 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at this week’s low of $15.185. First resistance is seen at $16.25 and then at $16.47. Next support is seen at the overnight low of $15.96 and then at $15.75. Wyckoff’s Market Rating: 7.0.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
