Gold Prices Firmer As Bulls Hang Tough

(Kitco News) - Gold prices are modestly higher in early-afternoon U.S. trading Wednesday. A more bullish technical posture on the charts and rising tensions in the Persian Gulf are working to support the safe-haven gold market this week. June gold futures were last up $2.10 an ounce at $1,298.40. July Comex silver was last up $0.008 at $14.82 an ounce.

Traders and investors are somewhat assuaged at mid-week following more upbeat comments from President Trump and China officials Tuesday that suggested the world’s two largest economies want an amenable resolution soon in their trade war.

However, the world marketplace at present seems to be overlooking a U.S. military build-up in the Middle East. President Trump may be preparing to send 100,000 or more U.S. troops to the region, to complement the U.S. naval task force steaming to the Persian Gulf. This week’s attacks on two Saudi oil tankers in the Strait of Hormuz showed that tensions in the region are on the rise—namely a U.S.-Iran stare-down. This situation is likely to move to the front burner of the marketplace in the coming weeks. The U.S. government has also warned U.S. citizens to get out of Iraq.

The key “outside markets” today see the U.S. dollar index slightly firmer. The USDX is not that far below its recent two-year high and greenback bulls still are still in firm technical control. Meantime, Nymex crude oil prices are a bit higher today and trading around $62.00 a barrel. 

Technically, June gold futures prices closed near mid-range today. This week’s price action has started a fledgling uptrend on the daily bar chart. Gold bulls have gained the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical 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 this week’s high of $1,304.20 and then at $1,310.00. First support is seen at today’s low of $1,293.60 and then at $1,290.00. Wyckoff's Market Rating: 5.5

July silver futures prices closed near mid-range today. The silver bears have the firm overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.15 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 this week’s high of $14.865 and then at $15.00. Next support is seen at this week’s low of $14.615 and then at the May low of $14.57. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed up 205 points at 274.55 cents today. Prices closed nearer the session high today on short covering. The copper bears still have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 285.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 256.10 cents. First resistance is seen at this week’s high of 277.35 cents and then at 280.00 cents. First support is seen at this week’s low of 270.90 cents and then at 270.00 cents. Wyckoff's Market Rating: 3.5.