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Gold Prices Power To 6-Yr High, But Due For Correction

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(Kitco News) – Gold Prices Are More Good Gains In Early US trading Tuesday, and hit another six-year high of $ 1,442.90 in August futures. A bullish cocktail of safe-haven demand, a slumping U.S. dollar index, easy central bank monetary policies and bullish technicals are driving the yellow metal north. However, the recent hard-and-fast-loss-days have gone into a short-term overbought condition, technically. August gold futures were last up $ 1

1.00 at ounce at 1,429.10. July Comex silver prices were last down $ 0.007 at $ 15.37 an ounce.

Asian and European markets were mostly weaker overnight. U.S. Stock indexes are pointed toward slightly lower openings when the New York day session begins. Many markets are in a pause mode, awaiting fresh news on the geopolitical front.

The United States of America continues to simmer near the front burner. President Trump said Monday there will be major new sanctions in Iran and called the country's number-one sponsor of terrorism. Iran wants to respond, and Iran is itching for a military confrontation with the U.S. Trump appears to be unwilling to start a fight, but he does not want to stand by idly while being provoked.

Meantime, U.S. Pat. President Trump and Chinese President Xi are scheduled to meet in Japan at the G20 meetings late this week-possibly after the markets are closed on Friday- and discuss their ongoing trade. The outcome of that meeting was uncertain and could have been huge implications for many markets.

The key "outside markets" today see Nymex Crude Oil Prices Weaker and Trading around $ 57.50 a barrel. Meantime, U.S. dollar index is up on a corrective bounce after hitting a three-month low overnight.

U.S. Johnson Redbook and Goldman Sachs retail sales reports, the monthly house price index, the S & P / CoreLogic house price index, the Richmond Fed business survey, the consumer confidence index and new residential sales.

 Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls have the strong overall near-term technical advantage. Prices are in an accelerating four-week-old uptrend on the daily cash chart. However, the market is now short-term overbought and due for a normal and healthy downside correction very soon. Bulls' next upside price objective is to produce a close in August futures above solid resistance at $ 1,450.00. Bears' next near-term downside price breakout objective is pushing down at $ 1.400.00. First resistance is now at $ 1,442.90 and then at $ 1,450.00. First support is at low today's $ 1,421.40 and then at $ 1,415.00. Wyckoff's Market Rating: 9.0

 24 hours silver chart [ Kitco Inc. ]

July silver futures bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily cash chart. Silver bulls' next upside price breakout is a solid technical resistance at $ 16.00 an ounce. The next downside price for the bear is below $ 14,625. First resistance is last week's high of $ 15,555 and then at $ 15.73. Next support is seen at $ 15.25 and then at $ 15.00. Wyckoff's Market Rating: 6.0.

Disclaimer: Kitco Metals Inc. The Views expressed in this article are those of the author and may not reflect those of The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals, Inc. and the author of this article do not accept culpability for losses and / or arising from the use of this publication.

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