Gold price up as overall technicals remain friendly

(Kitco News, Tues. July 23rd, 2024) – Gold prices are trading higher in early U.S. trading Tuesday, as the overall technical posture for the yellow metal remains bullish. That continues to invite the chart-based speculators to the long side of the market, including doing some perceived bargain hunting when the market dips. Silver prices are down and hit a five-week low overnight. August gold was last up $13.80 at $2,408.50. September silver was down $0.116 at $29.205.

Asian and European stock indexes were mixed but mostly lower overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins.  The stock indexes have at least temporarily been stabilized after steep sell offs last week.

The marketplace fallout from the semi-surprising weekend announcement from President Biden that he is pulling out of the U.S. presidential race, with the presumptive new Democratic candidate now being Kamala Harris, has not been severe. While being a rare U.S. political event, Biden’s withdrawal from the race and Harris’s stepping into the void has been orderly, organized and seemingly not disjointed.

Traders and investors are looking ahead to late-week important U.S. economic data that includes the GDP report on Thursday and the personal income and outlays report, including its inflation indicators, on Friday morning.

The key outside markets today see the U.S. dollar index a bit firmer. Nymex crude oil prices are slightly down and trading around $78.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently 4.243%.

U.S. economic reports out Tuesday include the weekly Johnson Redbook weekly retail sales report, the Richmond Fed business survey and existing home sales.

Technically, August gold bulls still have the firm overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,488.40. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,300.00. First resistance is seen at this week’s high of $2,414.40 and then at $2,425.00. First support is seen at $2,400.00 and then at this week’s low of $2,385.20.

September silver futures bulls have the slight overall near-term technical advantage but have faded badly recently. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at $28.00. First resistance is seen at this week’s high of $29.615 and then at $30.00. Next support is seen at the overnight low of $28.825 and then at $28.50.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com