Gold, Silver Prices Rebound From Multi-Month Lows
(Kitco News) - Gold and silver pricesare moderately higher in early U.S. trading Tuesday, on someshort covering in the futures markets and perceived bargain-basement buying inthe cash markets. Gold hit a 12-month low overnight and silver scored a6.5-month low on Monday. The key “outside markets” are also in a bullish dailyposture for the precious metals markets today, as the U.S. dollar index islower and crude oil prices are higher. Augustgold futures were last up $7.10an ounce at $1,248.80. July Comex silver was last up $0.14 at $15.975 an ounce.
Reportsovernight said Monday’s trading in gold exchange traded funds saw the largestoutflow of money from those funds since late March. Gold and silver bullsremain stymied by their metals’ inability to rally in the face of the threat ofa global trade war and some fresh instability in the European Union.
Worldstock markets were mixed to higher overnight. U.S. stock indexes are pointed towardhigher openings when the New York day session begins.
Europeanstock markets were assuaged today on news that German Chancellor Merkel hasapparently avoided a political crisis by coming to agreement with other Germanlawmakers regarding immigration laws.
Inother overnight news, the Euro zone’s producer price index in May was reportedup 0.8% from April and up 3.0%, year-on-year. Those numbers were a littlehigher than expected.
TheU.S. Independence Day holiday is on Wednesday, which is likely to make tradingin the U.S. light today, especially as many markets close early today. However,some important U.S. economic data is out later this week, including the Fed’sFOMC minutes on Thursday and the jobs report from the Labor Department onFriday.
Thekey “outside markets” today find the U.S. dollar index lower but still not farbelow the 12-month high hit last week. Meantime, Nymex crude oil prices are higher,hit a 3.5-year high and trading just below $75.00 a barrel.
U.S.economic data due for release Tuesday includes the weekly Goldman Sachs andJohnson Redbook retail sales reports, the ISM New York report on business,manufacturers’ shipments and inventories, the IDB/TIPP economic optimism indexand domestic auto industry sales.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,gold bears have the firm overall near-term technical advantage amid the pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in August futures above solidresistance at $1,275.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,230.00. Firstresistance is seen at $1,257.10 and then at $1,261.90. First support is seen atthe overnight low of $1,238.80 and then at $1,230.00. Wyckoff's Market Rating: 2.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Julysilver futures bears have the firm overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $16.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the Decemberlow of $15.50. First resistance is seen at Monday’s high of $16.18 and then at $16.25.Next support is seen at Monday’s low of $15.80 and then at $15.75. Wyckoff'sMarket Rating: 2.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.