(Kitco News) - Gold prices are trading near steady in midday dealings Tuesday, on some mild profit taking and chart consolidation from recent strong gains that pushed prices to a nine-week high overnight. Risk appetite is also keener today than was the case on Monday, evidenced by a big rally in the U.S. stock market. That’s a negative for the save-haven gold and silver markets. August gold futures were last up $0.10 an ounce at $1,328.00. July Comex silver prices were last up $0.02 at $14.76 an ounce.
Gold saw a brief pop at mid-morning following remarks from Fed Chairman Jerome Powell, who said at a conference that the current disputes between the U.S. and its major trading partners have the attention of the Fed. Powell also said inflation remains non-problematic and that the Fed will act appropriately to continue the U.S. economic expansion. Gold prices then settled right back to near unchanged, however.
European equities were mostly firmer overnight and Asian stock markets were mostly down. The U.S. indexes hit three-month lows Monday and are still trending down on the daily charts. That’s still a positive for the precious metals markets.
Australia’s central bank cut its main interest rate today to a record low of 1.25% from 1.50%. It was the first rate cut in nearly three years. The central bank said it made the move due to worries about global trade wars reducing world economic activity. In recent weeks the marketplace is placing much higher odds on the U.S. Federal Reserve lowering interest rates, possibly as soon as this summer. The European Central Bank is also seen as likely easing its monetary policy as soon as this summer.
The notions of easier money coming from the world’s major central banks have boosted gold prices and dropped government bond yields. Notions of lower interest rates are a mixed bag for the global stock markets—a positive due to more financial market liquidity but a negative because the rates would be coming down due to slowing economic growth prospects.
In other overnight news, the Euro zone reported its May consumer price index at up 1.2%, year-on-year, versus up 1.7% in April. The April reading was the lowest in over a year.
The key “outside markets” today see the U.S. dollar index trading slightly up after absorbing solid losses Monday. The greenback bulls have faded recently and the near-term price uptrend for the USDX is in jeopardy. Meantime, Nymex crude oil prices are also slightly higher and trading around $53.50 a barrel after dropping to a nearly five-month low on Monday.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically, August gold futures prices were nearer the session low today. The bulls have the overall near-term technical advantage. A three-month-old downtrend on the daily bar chart has been soundly negated. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,335.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,334.10 and then at $1,335.70. First support is seen at $1,320.00 and then at this week’s low of $1,310.90. Wyckoff's Market Rating: 6.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
July silver futures prices were nearer the session high today, on tepid short covering. The silver bears still have the firm overall near-term technical advantage. A three-month-old downtrend on the daily bar chart is now in jeopardy of being negated with more price gains this week, which would then suggest a market bottom is in place. 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 today’s high of $14.825 and then at $15.00. Next support is seen at this week’s low of $14.565 and then at $14.50. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed up 170 points at 266.70 cents today. Prices closed near the session high today on short covering after hitting a five-month low Monday. The copper bears have the firm overall near-term technical advantage. Prices are in a steep seven-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 267.50 cents and then at 270.00 cents. First support is seen at today’s low of 263.90 cents and then at this week’s low of 261.10 cents. Wyckoff's Market Rating: 2.0.
