Gold Price Sees Some Profit Taking Ahead Of Big Day Thursday

New York (June 7)  Gold prices ended the U.S. day session modestly lower on a normal downside technical correction and some profit taking from the shorter-term traders, after hitting a seven-week high Tuesday. A big drop in crude oil prices Wednesday also weighed on the precious metals. Major news events occur Thursday, which are likely to move the metals markets. August Comex gold was last down $4.60 an ounce at $1,292.90. July Comex silver was last down $0.095 at $17.615 an ounce.

Terror attacks in Iran Wednesday, including on its parliament, did not had a significant impact on the world marketplace. ISIS has claimed responsibility for the attacks.

Important and likely markets-moving events are on tap Thursday, including general elections in the U.K., a European Central Bank meeting, and former FBI director James Comey testifying to the U.S. Congress. That should make for an active and potentially volatile day in many markets. Next week, the Federal Reserve’s FOMC meets, at which time it is expected the Fed will slightly raise U.S. interest rates.

There is also a bit of uneasiness in the marketplace about the Trump administration that continues to be embroiled in controversy, particularly regarding alleged ties to the Trump team and the Russian government involving the presidential election in 2016. The Wall Street Journal on Tuesday ran a scathing editorial on Trump’s leadership style.

The key outside markets on Wednesday saw the U.S. dollar index is higher overnight, but those gains were erased during the U.S. day session and prices were near steady Wednesday afternoon. The index hit a six-month low Tuesday. The greenback bears are still in firm near-term technical control as dollar index prices are in a three-month-old downtrend. The other “outside market” on Wednesday saw Nymex crude oil futures prices sharply lower and hitting a four-week low. The oil market bears have the firm overall near-term technical advantage as prices are well below $50.00 a barrel.

Technically, August gold futures prices closed near mid-range today. The gold bulls still have the firm overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. 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 $1,260.00.

Source: KitcoNews