We are long but remember the biggest sell opportunity is not far
Gold and silver prices are steady to weaker in early U.S. trading Thursday. Bulls in both metals have suffered a minor setback late this week and now they need to step up and show some fresh strength to keep their price uptrends on the charts alive.
The just-released third estimate of second-quarter U.S. GDP came in at up 2.0%, which was unchanged from the last estimate and in line with market expectations. The markets showed little reaction to the news.
Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
The up-and-down U.S.-China trade rhetoric is presently in “up” mode following positive comments on the matter from President Trump on Wednesday. Then on Thursday China’s Commerce Ministry said Chinese companies will buy “sizeable amounts” of U.S. soybeans and pork ahead of high-level trade discussions scheduled to take place in October. This has given the world marketplace a bit of a boost in risk appetite.
However, the positive news on the world trade front is being blunted by the U.S. House of Representatives considering impeaching Trump over what the House says are illegal comments Trump made to a Ukrainian official. The Trump administration on Wednesday released the transcript of his comments to the official, which is being spun by both Republicans and Democrats to each’s favor. Whether Trump actually gets impeached seems unlikely at this time. However, the inquiry by the House is very likely to bog down the U.S. government to a standstill on new legislation, and is likely to hurt Trump’s foreign policy agenda, including trade negotiations with China.
Upbeat economic data coming out of Germany is also assuaging European investors late this week. A consumer sentiment report Thursday showed a higher reading in September than in August, and the September number was also higher than expected. Recent economic data coming out of Germany had been dour.
Nymex crude oil prices are near steady and trading around $56.50 a barrel. The other key outside market today sees the U.S. dollar index trading slightly lower but not far below the high for the year.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report, revised corporate profits, the advance economic indicators report, the Kansas City Fed manufacturing survey, and pending home sales.
Technically, the gold bulls have the firm overall near-term technical advantage as a four-month-old uptrend on the daily bar chart remains in place. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the September low of $1,490.70. First resistance is seen at the overnight high of $1,518.00 and then at 1,525.00. First support is seen at $1,500.00 and then at $1,490.70.
The just-released third estimate of second-quarter U.S. GDP came in at up 2.0%, which was unchanged from the last estimate and in line with market expectations. The markets showed little reaction to the news.
Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
The up-and-down U.S.-China trade rhetoric is presently in “up” mode following positive comments on the matter from President Trump on Wednesday. Then on Thursday China’s Commerce Ministry said Chinese companies will buy “sizeable amounts” of U.S. soybeans and pork ahead of high-level trade discussions scheduled to take place in October. This has given the world marketplace a bit of a boost in risk appetite.
However, the positive news on the world trade front is being blunted by the U.S. House of Representatives considering impeaching Trump over what the House says are illegal comments Trump made to a Ukrainian official. The Trump administration on Wednesday released the transcript of his comments to the official, which is being spun by both Republicans and Democrats to each’s favor. Whether Trump actually gets impeached seems unlikely at this time. However, the inquiry by the House is very likely to bog down the U.S. government to a standstill on new legislation, and is likely to hurt Trump’s foreign policy agenda, including trade negotiations with China.
Upbeat economic data coming out of Germany is also assuaging European investors late this week. A consumer sentiment report Thursday showed a higher reading in September than in August, and the September number was also higher than expected. Recent economic data coming out of Germany had been dour.
Nymex crude oil prices are near steady and trading around $56.50 a barrel. The other key outside market today sees the U.S. dollar index trading slightly lower but not far below the high for the year.
Other U.S. economic data due for release Thursday includes the weekly jobless claims report, revised corporate profits, the advance economic indicators report, the Kansas City Fed manufacturing survey, and pending home sales.
Technically, the gold bulls have the firm overall near-term technical advantage as a four-month-old uptrend on the daily bar chart remains in place. Bulls’ next upside price objective is to produce a close in October futures above solid resistance at the September high of $1,566.20. Bears' next near-term downside price breakout objective is pushing December futures prices below solid technical support at the September low of $1,490.70. First resistance is seen at the overnight high of $1,518.00 and then at 1,525.00. First support is seen at $1,500.00 and then at $1,490.70.
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