(Kitco News) – Gold prices are slightly higher in early U.S. trading Wednesday. The yellow metal traders at mid-week are seeing the bullish elements of higher crude oil prices and a still-wobbly U.S. stock market, but also the bearish aspects of rising bond yields and a recent rebound in the U.S. dollar index. August gold futures were last up $1.00 at $1,853.00. July Comex silver futures were last down $0.223 at $21.955 an ounce.
Global stock markets were mixed overnight, with European shares mostly down and Asian shares mostly up. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The U.S. indexes are still a bit wobbly but have shown technical signs that near-term market bottoms are in place. However, bulls have not shown the power to start near-term price uptrends.
In overnight news, the Euro zone revised first-quarter GDP was reported up 0.6% from the fourth quarter versus the last estimate of up 0.3%. Year-on-year, 1Q GDP was up 5.4% versus the last estimate of up 5.1%.
The World Bank has lowered its growth forecast for the global economy this year to 2.9% from a January prediction of up 4.1% and April’s 3.2% estimate. The Bank warned that several years of above-average inflation and below-average growth lie ahead.
Two key data points of the week are the European Central Bank’s regular monetary policy meeting Thursday, at which the central bank is expected to lay out plans for tightening its monetary policy. On Friday the U.S. consumer price index report for May is set for release. The CPI is expected to be up 8.2%, year-on-year, after a rise of 8.3% in April.
The key outside markets today see Nymex crude oil prices higher and trading around $121.00 a barrel. The U.S. dollar index is firmer in early trading. The yield on the 10-year U.S. Treasury note is fetching 3.004%. For perspective, the German 10-year bund is yielding 1.316% and the 10-year U.K. gilt is yielding 2.241%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, monthly wholesale trade and the weekly DOE liquid energy stocks report.
Technically, the August gold futures bears have the overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,900.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,800.00. First resistance is seen at this week’s high of $1,861.20 and then at last week’s high of $1,878.60. First support is seen at this week’s low of $1,838.50 and then at last week’s low of $1,830.20. Wyckoff’s Market Rating: 4.0
July silver futures bears have the overall near-term technical advantage. However, the bulls are working on a price uptrend on the daily chart but need to show more power soon to keep it alive. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $23.50 an ounce. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at the overnight high of $22.275 and then at this week’s high of $22.565. Next support is seen at this week’s low of $21.84 and then at $21.50. Wyckoff’s Market Rating: 3.5.
This post was originally published on *this site*