(Kitco, Thursday, May 24th,2019) – Gold prices are posting good gains and are near their session highs in midday U.S. trading Thursday. Slumping world stock markets and crude oil prices today have put a safe-haven bid into the gold and silver markets. June gold futures were last up $11.10 an ounce at $1,285.20. July Comex silver prices were last up $0.166 at $14.615 an ounce.
World stock markets were mostly down overnight. U.S. stock indexes are sharply lower at midday. Risk aversion has again surfaced late this week. Renewed worries about a prolonged U.S.-China trade war following new harsh rhetoric coming out of China are featured today. However, traders and investors are also eyeing parliamentary elections in the U.K. and The Netherlands that got under way Thursday, with the populist parties (euroskeptics) possibly doing well. Other European countries’ election results will be announced Sunday. The U.K. Brexit issue that remains unresolved amid Prime Minister Theresa May’s planned departure continues to weigh on the British pound.
A big drop in oil prices of around $5.00 a barrel the past two days have also helped to boost the safe-haven metals, even though weaker oil prices generally would be considered a bearish “outside market” force for the metals.
The U.S. dollar index hit a two-year high early today, but then backed off on some profit taking.
The U.S.’s more aggressive stance against Iran in recent weeks is another matter that could quickly elevate trader and investor tensions. A U.S. naval task force is in the Persian Gulf region.
Technically, June gold futures prices closed nearer the session high. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at today’s high of $1,277.10 and then at $1,290.00. First support is seen at $1,280.00 and then at today’s low of $1,272.10.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com