Gold Prices Again Trade Near Steady
New York (Jun 26) Gold prices are once again near steady in early U.S. trading Friday. Gold prices continue to trade sideways to lower amid a bearish technical posture for the market. The same goes for silver, which hit a three-month low overnight. Gold bulls are disappointed that some recent, unsettling developments have not benefitted their safe-haven metal. August Comex gold was last up $0.20 at $1,172.00 an ounce. September Comex silver was last down $0.046 at $15.795 an ounce.
China’s stock market sold off sharply overnight, with the main Shanghai index down over 7%. The Shanghai index is now down more than 20% from the late springtime high. Traders and investors next week will keep a very close eye on Chinese markets, and any contagion effect that may develop. This situation could prove bullish for the gold market in the coming weeks, China stock and financial markets become unstable.
Amid no fresh, major, markets-moving news for most of this week, the market place has been focusing on the Greece-European Union debt restructuring/bailout talks, which have produced no agreement as of Friday morning. Reports are now saying the talks will go into the weekend. Reports also said Greece is now willing to accept stricter EU/IMF austerity measures. The prospects for a deal had dimmed late this week after some hope earlier this week a deal would soon be reached. Greece’s present arrangement with its EU/IMF creditors expires on June 30—at which time Greece also needs to make a big debt payment to its EU/IMF creditors. Most markets have become numb to this matter. It’s the same song, but a different verse, that has been playing out for the past few years. Markets are fickle and nobody knows when the EU sovereign debt problems will get the market place exercised.
There was a possible terrorist attack on a French factory today, with reports saying at least one person was killed. Details were still unfolding as of this writing and the markets were not reacting significantly to the incident.
U.S. economic data due for release Friday is light and includes the University of Michigan consumer sentiment survey.
The London A.M. gold fix is $1,174.00 versus the previous P.M. fix of $1,172.65.
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 $1,190.00. 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 $1,178.00 and then at $1,185.00. 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. Prices dropped to a more-than three-month low overnight. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $16.46 an ounce.
Source: KitcoNews
