Gold Price Languishes as Fresh Fundamental Inputs Awaited
New York (Jun 25) Gold prices are near steady in early U.S. trading Thursday. There is not much new in the market place this week, which is allowing the chart-based traders to control gold and silver—and the charts are bearish. August Comex gold was last down $0.80 at $1,172.10 an ounce. September Comex silver was last down $0.09 at $15.80 an ounce.
The Greece-European Union debt restructuring/bailout talks are down to the 11th hour (again) today. Reports said Greece and its lenders are submitting two drafts to a summit of EU leaders in Brussels taking place Thursday and Friday. The prospects for a deal have dimmed late this week after some hope earlier this week a deal would soon be reached. A Wall Street Journal report Wednesday said there is still a wide gap between the two sides. Germany is the most vocal critic of Greece’s proposals, saying they don’t go far enough on austerity measures. Greece’s present arrangement with its EU/IMF creditors expires on June 30—at which time Greece could run out of cash and be in default on its loans.
China’s central bank injected liquidity into its financial system Thursday, for the first time in over two months. The move is meant to lower borrowing costs for consumers and businesses. Some are reading this modest move by China’s central bank as suggesting further, more aggressive monetary policy easing may not occur. Markets paid little attention to the news.
U.S. economic data due for release Thursday includes the weekly jobless claims report, personal income and outlays, the Kansas City Fed manufacturing survey, and the flash services PMI.
The London A.M. gold fix is $1,174.60 versus the previous P.M. fix of $1,173.75.
Technically, August gold futures bears have the firm overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the June low of $1,162.10. First resistance is seen at the overnight high of $1,177.30 and then at $1,180.00. First support is seen at this week’s low of $1,168.10 and then at $1,162.10. Wyckoff’s Market Rating: 2.0.
September silver futures bears have the firm near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $16.46 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the April low of $15.655.
Source: KitcoNews
