Gold Prices Up From Overnight Lows As U.S. Stocks Sharply Down
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(Kitco News) - Gold prices are trading near steady levels in early-morning U.S. trading Monday. Prices are near daily highs and have erased modest overnight losses as it looks to be another rough day for the U.S. stock market. June gold futures were last up $0.10 an ounce at $1,287.70. July Comex silver was last down $0.12 at $14.67 an ounce.
World stock markets were mostly down overnight. U.S. stock indexes are pointed toward solidly lower openings when the New York day session begins, and are close to last week’s five-week lows.
The failure of the U.S. and China to reach a trade deal late last week and the resulting new tariffs put in place by the U.S., including retaliatory threats from China, have the world marketplace in a downbeat mood to start the trading week. Trade officials from both countries will continue talking, however. Keener risk aversion in the marketplace generally works in favor of the safe-haven metals markets.
The marketplace is so far not being significantly impacted by news two Saudi oil tankers were attacked in the Strait of Hurmuz over the weekend. The attackers are apparently unknown. However, tensions between the U.S. and Iran have ratcheted up in recent weeks, with some speculating Iran may be behind the weekend attacks on the Saudi ships, which were not sunk but did sustain significant damage.
The key “outside markets” today see the U.S. dollar index slightly lower. Meantime, Nymex crude oil prices are higher and trading around $62.50 a barrel.
There is not major U.S. economic data due for release Monday.
Live 24 hours gold chart [Kitco Inc.]
Technically, the gold bears have the overall near-term technical advantage. A nearly three-month-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at last week’s high of $1,292.80 and then at $1,300.00.
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