Gold Prices Pausing in a Strong Uptrend

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Jul 15, 2020 11:13 NY TimeKitco 10AM Silver Fix

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(Kitco News, Wed. July 15th, 2020) – Gold prices are modestly lower in early U.S. trading Wednesday, on some more normal profit-taking from the shorter-term futures traders after recent good gains. Silver prices are up this morning and near this week’s 11-month high. Bullish technicals continue to bolster both precious metals markets. August gold futures were last down $5.20 an ounce at $1,808.30. September Comex silver prices were last up $0.215 at $19.745 an ounce. 

Global stock markets were mostly up in overnight trading. The U.S. stock indexes are pointed toward higher openings when the New York day session begins. The global marketplace at mid-week is mostly upbeat on reports that a Covid-19 vaccine trial by drug firm Moderna has produced successful results in creating robust antibodies for all of its recipients. This good news is apparently usurping the latest U.S.-China developments that saw President Trump outline in a news conference late Tuesday several steps to further sanction China, including removing Hong Kong’s favored trade status. China immediately vowed retaliation. Asian shares were mostly lower on the rising U.S-China tensions.

The important outside markets today see Nymex crude oil prices higher and trading around $40.75 a barrel. There is an OPEC meeting beginning that most expect will see the cartel keep some form of its present production-cut quota. The U.S. dollar index is lower and hit a five-week low today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.64% level. 

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Empire State manufacturing survey, import and export price indexes, industrial production and capacity utilization, the Federal Reserve’s beige book, and the weekly DOE liquid energy stocks report.

Technically, the gold bulls have the strong overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,779.20. First resistance is seen at the overnight high of $1,819.50 and then at $1,825.50. First support is seen at $1,800.00 and then at this week’s low of $1,791.10.

September silver futures bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at the overnight high of $19.815 and then at $20.00. Next support is seen at $19.50 and then at Tuesday’s low of $19.24.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com