Gold Weaker Amid Keener Risk Appetite
Gold Weaker Amid Keener Risk Appetite
Tuesday August 09, 2016 08:23
(Kitco News) – Gold prices are modestly lower in early U.S. trading. Risk appetite in the world marketplace has been on the upswing the past couple weeks and that’s bearish for safe-haven assets like gold. December Comex gold was last down $3.70 an ounce at $1,337.60. September Comex silver was last down $0.14 at $19.665 an ounce.
World stock markets were mostly higher overnight, boosted in part on reports the OPEC oil cartel will hold an informal meeting in late September. Equities were supported on ideas OPEC could move at that time to curtail their crude oil production levels. Crude oil prices are in a two-month-old slump and last week briefly dropped below $40.00 a barrel.
U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
In other overnight news, China’s producer price index was reported down 1.7% in July, year-on-year, versus a decline of 2.6% in June. The July number was deemed better than expected.
The key “outside markets” Tuesday morning see the U.S. dollar index trading firmer and Nymex crude oil prices also slightly higher.
U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, preliminary productivity and costs, monthly wholesale trade, and the IDB/TIPP economic optimism index.
(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)
Wyckoff’s Daily Risk Rating: 2.5 (Trader and investor market risk aversion is not elevated today.)
(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 5, with 1 being least risk-averse (most risk-on) and 5 being the most risk-averse (risk-off).
Live 24 hours gold chart [Kitco Inc.]
Technically, December gold futures bulls still have the overall near-term technical advantage but are now fading. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the July high of $1,384.40. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at the July low of $1,318.50. First resistance is seen at Monday’s high of $1,343.90 and then at $1,350.00. First support is seen at Monday’s low of $1,335.30 and then at $1,325.00. Wyckoff’s Market Rating: 6.0
Live 24 hours silver chart [ Kitco Inc. ]
September silver bulls have the overall near-term technical advantage but are fading. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at the July high of $21.225 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.00. First resistance is at $20.00 and then at $20.25. Next support is seen at Monday’s low of $19.515 and then at $19.25. Wyckoff’s Market Rating: 6.0.