Gold, silver see price pressure amid little risk aversion

(Kitco News, Fri. July 16th, 2021)– Gold and silver prices are lower in early U.S. trading Friday. The safe-haven metals are on the defensive to end the trading week as trader and investor risk appetite remains upbeat, as major U.S. stock indexes this week have hit record highs and amid no major geopolitical flare-ups in quieter summertime trading. August gold futures were last down $11.70 at $1,817.30 and September Comex silver was last down $0.254 at $26.14 an ounce.

Global stock markets were flat to narrowly mixed overnight. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. While the Nasdaq and S&P stock indexes have hit record highs this week, it appears trader and investor enthusiasm may be losing some momentum as the new Covid-19 strain is surging in regions of the world, including the U.S. Just when it appeared the pandemic was being tamped down in much of the world, it is flaring up again.

The U.S. data point of the day Friday is the retail sales report for June, seen down 0.4% from May and compares to a decline of 1.3% in May from April.

In other news, the Biden administration is warning U.S. businesses about operating in Hong Kong, amid mainland China’s tightening grip on the city.

Overnight, the Euro zone June consumer price index was reported up 0.3% from May and up 1.9%, year-on-year. Those numbers were in line with market expectations and much tamer than this week’s U.S. consumer price index numbers.

The key outside markets today see the U.S. dollar index slightly lower, while Nymex crude oil prices are firmer and trading around $72.00 a barrel. The 10-year U.S. Treasury note yield is presently fetching 1.324%.

Other U.S. economic data due for release Friday includes manufacturing and trade inventories, Treasury international capital data and the University of Michigan consumer sentiment survey.

Technically, gold futures bulls have the overall near-term technical advantage and have restarted a price uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at $1,725.00 and then at this week’s high of $1,835.00. First support is seen at $1,810.00 and then at $1,800.00. Wyckoff’s Market Rating: 6.0

The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing September futures prices above solid technical resistance at $28.00 an ounce. The next downside price objective for the bears is closing prices below solid support at the June low of $25.58. First resistance is seen at this week’s high of $26.575 and then at the July high of $26.91. Next support is seen at $26.00 and then at last week’s low of $25.82

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com