Gold and silver prices see normal corrective pullbacks in uptrends

New York(July 7)  Gold and silver prices are moderately down in early U.S. trading Tuesday, on routine downside corrections following recent gains and amid ongoing price uptrends. Both markets remain firmly bullish from a charts perspective. August gold futures were last down $8.70 an ounce at $1,784.80. September Comex silver prices were last down $0.257 at $18.325 an ounce.

Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed toward lower openings when the New York day session begins. Global equities markets on Tuesday are seeing corrective pullbacks and profit taking from the shorter-term futures traders, following recent solid gains. There were also some downbeat economic projections released Tuesday from the OECD think tank and the European Commission. The OECD said global unemployment in 2020 will be the highest since the Great Depression of the 1930s. The EC said the Euro zone economy will shrink by 8.3% this year, which is a greater decline than its earlier forecast of minus 7.4%. German industrial production also came in weaker than expected today.

The important outside markets today see Nymex crude oil prices lower and trading around $40.00 a barrel. The U.S. dollar index is higher early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.67% level.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the IBD-TIPP economic optimism index. Several Federal Reserve officials are slated to give speeches today.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at this week’s high of $1,807.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,754.00. First resistance is seen at the overnight high of $1,797.60 and then at $1,800.00. First support is seen at Monday’s low of $1,779.20 and then at last week’s low of $1,766.30.

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