Gold futures weaker as bulls struggle amid scant risk aversion

New York (Jun 24)  Gold futures are modestly lower in midday U.S. trading Thursday. Prices have visited both sides of unchanged today in choppy trading. Gold and silver bulls have stabilized their markets this week. However, they have more work to do in the near term to improve the still-bearish near-term technical postures of both metals. August gold futures were last down $5.30 at $1,788.00 and July Comex silver was last down $0.006 at $26.105 an ounce.

Global stock markets were mostly higher overnight. The U.S. stock indexes are higher at midday and are at or near their record highs. There remains little risk aversion in the global marketplace at present, amid a generally calm geopolitical environment—and that’s bearish for the safe-haven metals.

The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures are a just bit weaker and trading around $73.00 a barrel after hitting a 2.5-year high of $74.25 on Wednesday. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.489%.

Technically, August gold futures bears have the overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. A bearish pennant pattern has formed on the daily chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,826.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at this week’s high of $1,795.60 and then at $1,800.00. First support is seen at today’s low of $1,772.70 and then at last week’s low of $1,761.20.

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