Gold, Silver Prices Dip on Normal Profit Taking

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SPOT MARKET IS OPEN
closes in 4 hrs. 24 mins.Jul 16, 2020 12:35 NY Time

Bid/Ask	1802.70 / 1803.70
Low/High	1800.60 / 1812.60
Change	-7.80	-0.43%
30daychg	+76.60	+4.44%
1yearchg	+397.10	+28.25%
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Silver Price & PGMs

Jul 16, 2020 12:35 NY TimeKitco 10AM Silver Fix

Silver	19.27	-0.16
Platinum	822.00	-4.00
Palladium	1944.00	+21.00
Rhodium	6000.00	0.00

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(Kitco, Thurs. July 16th, 2020) – Gold and silver prices are modestly lower in early U.S. trading Thursday, on some more routine profit taking from the shorter-term futures traders after recent good gains. Silver prices overnight did poke to another 11-month high and are closing in on $20. August gold futures were last down $6.50 an ounce at $1,807.40. September Comex silver prices were last down $0.081 at $19.68 an ounce.

Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. There are growing worries the surge in Covid-19 reported infections worldwide, including in the U.S., will force economies to be locked down again. U.S. markets are likely to be impacted by a very busy day of economic reports and earnings releases.

China became the first major economy to come out of contraction when it on Thursday reported better-than-expected second-quarter GDP at up 3.2% versus -6.8% in the first quarter, year-on-year. A 2.4% rise was forecast for the second quarter. China’s industrial production rose 4.8% in June versus up 4.4% in May. However, China’s retail sales in June were reported at -1.8% versus -2.8% in May. Despite the generally upbeat news, China’s main stock index, the Shanghai composite, fell by 4.5% and the sharpest drop since February.

The European Central Bank meets today and is expected to keep its emergency bond buying program and benchmark rates unchanged. Much of the potential future support for the European Union economy is contingent on the outcome of discussions over the 750 billion Euro recovery fund that start Friday.

The important outside markets today see Nymex crude oil prices weaker and trading around $40.80 a barrel. The U.S. dollar index is firmer after hitting a five-week low Wednesday. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.62% level.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, retail sales, the NAHB housing index, Treasury international capital data, and manufacturing and trade inventories.

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 this week’s 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 $19.87 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