(Kitco News) - Gold prices are modestly lower in midday U.S. trading Tuesday, as trader and investor attitudes are more upbeat on this day, as seen by rallies in global stock markets that are due in part to big gains in crude oil prices today. June gold futures were last down $4.90 an ounce at $1,708.40. July Comex silver prices were last up $0.279 at $15.085 an ounce.
Global stock markets were mostly higher in overnight trading. U.S. stock indexes solidly higher at midday, boosted in part by a 20% rally on the day in Nymex crude oil futures—trading up over $4.00 a barrel at $24.50. Traders and investors Tuesday were also focused on the positives regarding local economies beginning to open back up in some major countries in Europe and North America.
However, rallies in equities in the near term are likely to be capped by eroding U.S.-China trade relations. The Trump administration has called out China’s leadership for mishandling and even concealing the Covid-19 outbreak that started in Wuhan, China. Reports this week are saying the global perception of China is now at a 30-year low. Many market watchers are wondering how China will react as it gets pushed farther into a corner by the U.S. This matter has the potential to eventually make the U.S.-China trade dispute of the past couple years look minor, and could even launch the world’s two largest economies into a “cold war” that rivals the one waged between the U.S. and Soviet Union for over four decades.
The German high court on Tuesday has challenged the European Central Bank’s bond-buying authority, saying the ECB exceeded its powers. This is big news, as Germany is the workhorse of the European Union collective economy. The Euro currency fell on the news, as it once again raises questions about the long-term sustainability of the European Union during this time of “de-globalization” leanings by some countries that include the U.S. and U.K. It could be that the hard-working Germans are finally getting fed up with other EU nations and their economic woes. This is a potentially longer-term bullish element for the safe-haven metals.
The other important outside market today sees the U.S. dollar index higher after the greenback bulls faded last week.
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, June gold futures bulls have the overall near-term technical advantage amid a seven-week-old price uptrend still in place on the daily bar chart. Bulls need to show fresh power soon to keep the price uptrend alive. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at the April high of $1,788.80. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,666.20. First resistance is seen at today’s high of $1715.30 and then at this week’s high of $1,726.00. First support is seen at today’s low of $1,695.40 and then at last week’s low of 1,676.00. Wyckoff's Market Rating: 6.5
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)
July silver futures bulls and bears are on a level overall near-term technical playing field. A four-week-old uptrend on the daily bar chart has been negated as trading has been sideways-lower recently. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $16.30 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at this week’s high of $15.225 and then at $15.50. Next support is seen at today’s low of $14.76 and then at $14.56. Wyckoff's Market Rating: 5.0.
July N.Y. copper closed up 185 points at 233.10 cents today. Prices closed near the session high today. The copper bulls have the slight overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 250.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 221.70 cents. First resistance is seen at 235.00 cents and then at last week’s high of 239.50 cents. First support is seen at this week’s low of 228.40 cents and then at 225.00 cents. Wyckoff's Market Rating: 5.5.
