Gold, silver bulls squelched by firmer U.S. dollar

Gold and silver prices are steady to slightly lower in midday U.S. trading Wednesday. A rally in the U.S. dollar index at mid-week kept the precious metals bulls at bay. August gold futures were last down $1.20 at $1,819.90. July Comex silver futures were last down $0.136 at $20.67 an ounce.

The marketplace was closely watching a central bankers’ forum in Portugal that began earlier today. Speakers included Fed Chairman Powell, ECB President Lagarde and Bank of England governor Bailey. However, the markets did not show any significant reactions to the central bank officials’ comments.

Today’s downbeat U.S. final first-quarter gross domestic product (GDP) estimate that showed contraction of 1.6% gave the gold and silver markets a brief boost but those gains could not be held.

Global stock markets were mostly lower overnight. U.S. stock indexes are mixed at midday. Trader and investor risk appetite has pulled back at mid-week, following downbeat consumer confidence readings out of the U.S. on Tuesday and out of the Euro zone today.

Gold prices trading near session highs as U.S. Q1 GDP drops 1.6%

The key outside markets today see Nymex crude oil prices near steady and trading around $111.75 a barrel. The U.S. dollar index is higher at midday. The yield on the 10-year U.S. Treasury note is fetching 3.108%.

Technically,August gold futures prices scored a mildly bearish “outside day” down on the daily bar chart today. Bears have the overall near-term technical advantage. However, the recent sideways and choppy trading action at lower price levels is suggesting a market bottom is in place. Bulls' next upside price objective is to produce a close above solid resistance at the June high of $1,882.50. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at today’s high of $1,834.90 and then at this week’s high of $1,842.80. First support is seen at today’s low of $1,810.70 and then at the June low of $1,806.10. Wyckoff's Market Rating: 3.0.

July silver futures were down $0.136 at $20.67 in midday trading today and nearer the session low. The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $22.565 an ounce. The next downside price objective for the bears is closing prices below solid support at the May low of $20.42. First resistance is seen at $21.00 and then at Tuesday’s high of $21.355. Next support is seen at the June low of $20.545 and then at $20.42. Wyckoff's Market Rating: 2.0.

July N.Y. copper closed up 35 points at 377.75 cents today. Prices closed nearer the session high today. The copper bears have the solid overall near-term technical advantage. A four-week-old price downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 350.00 cents. First resistance is seen at this week’s high of 384.30 cents and then at 390.00 cents. First support is seen at today’s low of 370.75 cents and then at the June low of 364.00 cents. Wyckoff's Market Rating: 1.5.

By Jim Wyckoff

For Kitco News

Time to buy Gold and Silver on the dips