Gold Gains On Short Covering, Bargain Hunting

(Kitco News) - Gold prices are moderately higher in midday U.S. trading Thursday. Some short covering in the futures market and perceived bargain hunting in the cash gold market were featured in U.S. trading today, following some mild weakness overnight. Gains in gold and silver were tempered today as there was a bit of risk appetite back in the world marketplace. Global equity markets saw mild recoveries from selling pressure seen earlier this week. June gold futures were last up $5.10 an ounce at $1,291.40. July Comex silver prices were last up $0.064 at $14.475 an ounce.

This morning’s key U.S. economic data point so far this week saw the second estimate of first-quarter gross domestic product up 3.1% versus the first estimate of up 3.2%. The latest GDP number was expected to grow 3.0%, year-on-year. Markets showed little reaction to the report.

European stock markets were mostly up overnight on corrective bounces from recent selling pressure. Asian stocks were mostly down, on continued worries about slowing global economic growth amid the U.S.-China trade war that shows no sign of ending any time soon. U.S. stock indexes are modestly up at midday, after hitting 2.5-month lows on Wednesday. 
Escalating rhetoric from the U.S. and China suggest diminishing chances the world’s two largest economies will reach any trade agreement before the G-20 meeting in Japan on June 28-29.

The key “outside markets” today see the U.S. dollar index trading near steady following good gains so far this week that have the index trading near its recent two-year high. Meantime, Nymex crude oil prices are lower and trading around $57.50 a barrel. Oil hit a three-month low Wednesday and prices are trending lower on the daily chart.

Technically, August gold futures prices closed nearer the session high today and scored a bullish “outside day” up on the daily bar chart. The bears have the overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical 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 $1,273.20. First resistance is seen at today’s high of $1,293.90 and then at $1,300.00. First support is seen at $1,285.00 and then at today’s low of $1,279.20. Wyckoff's Market Rating: 4.5

July silver futures prices closed near mid-range on more tepid short covering after hitting a six-month low on Tuesday. The silver bears have the solid 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 $15.00 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 last week’s high of $14.635 and then at $14.75. Next support is seen at this week’s low of $14.265 and then at $14.175. Wyckoff's Market Rating: 1.5.

July N.Y. copper closed down 155 points at 264.85 cents today. Prices closed nearer the session low today and hit a 4.5-month low. The copper bears have the firm overall near-term technical advantage. Prices are in a steep six-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 277.75 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 today’s high of 267.50 cents and then at 270.00 cents. First support is seen at today’s low of 263.65 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.0.