Gold Prices Gain as Risk Appetite For Stocks Less Keen

Gold Prices Gain As Risk Appetite For Stocks Less Keen

Tuesday July 02, 2019 08:43

Kitco News

(Kitco News, Tuesday, July 2nd, 2019) – Gold prices are moderately higher in early U.S. trading Tuesday. The safe-haven metal is seeing some renewed demand from traders and investors as their overall risk appetite is less robust than that which was seen on Monday. August gold futures were last up $5.10 an ounce at 1,394.40. September Comex silver prices were last down $0.068 at $15.12 an ounce.
After having some time to reflect upon the weekend summit meeting on trade between U.S. President Trump and China President Xi, the marketplace is not quite so upbeat on the prospects of a final agreement any time soon. There is speculation now that a deal won’t get done ahead of the 2020 U.S. presidential election. Furthermore, there was some downbeat U.S. manufacturing data released Monday and the Trump administration is again threatening the European Union with trade tariffs.
Asian and European stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins. Look for trading activity in the U.S. to start to die down today, ahead of the U.S. Independence Day holiday on Thursday.
In overnight news, the Reserve Bank of Australia cut its main interest rate for the second month in a row, and the central bank said more cuts may be needed.
The Euro zone reported its May producer price index dropped 0.1% from April and was up 1.6%, year-on-year. Those numbers were in line with expectations but underscore the low inflation gripping many of the world’s major economies. The yield on the German 10-year government bonds (bunds) hit a new record low today.

There was some civil unrest in the streets of Hong Kong on Monday, but that has fallen out of the TV news cycle, which suggests that situation has calmed down.
The key “outside markets” today see Nymex crude oil prices slightly lower and trading just below $59.00 a barrel. Meantime, the U.S. dollar index is modestly down in early U.S. trading.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales report, the ISM New York report on business, the IBD/TIPP economic optimism index, and domestic auto industry sales.

Technically, the gold bulls have the overall near-term technical advantage but need to step up and show power this week to keep alive a four-week-old uptrend 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 $1,363.00. First resistance is seen at $1,400.00 and then at Monday’s high of $1,401.90 and then at $1,408.60. First support is seen at Monday’s low of $1,384.70 and then at $1,380.00.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com