In early U.S. trading Thursday, Comex gold futures prices are modestly higher, maintained in part on safe-haven demand and additional short covering. Gold prices pushed above the key $1,400.00 level in overnight trading. Comex August gold last traded up $5.40 at $1,397.20 an ounce. Spot gold was last cited up $12.50 at $1,394.50.
Asian shares were severely lower in overnight trading. On Thursday, Japan’s Nikkei stock index lost 5% in value and has lost around 15% in a week’s time. In the Asian stock markets the sell-off did speed up several new safe-haven demands for gold. European stock markets were hardly mixed Thursday. Also on Thursday, The European Commission reported its head economic sentiment index increased to 89.4 in May from 88.6 in April. That news assisted to stabilize the European stock markets.
A lot of markets could make a move towards Thursday’s batch of U.S. economic data, underlined by the weekly jobless claims report and the second-quarter gross domestic product reading. The GDP figure is likely to experience annual growth of 2.4% in the second quarter. Other U.S. economic data will be issued on Thursday contains the weekly DOE liquid energy stocks report and pending home sales.
The London previous P.M. fixing was $1,382.50 and A.M. gold fixing is $1,406.25.
Prices are still in a 7.5-month-old downtrend on the daily bar chart. The Bears’ next near-term downside breakout price objective is closing prices under solid technical support at $1,350.00. The gold bulls’ next upside near-term price breakout objective is to create a close above solid technical resistance at $1,400.00. First resistance is sighted at the overnight high of $1,410.40 and then at last week’s high of $1,414.00, as for the first support is sighted at the overnight low of $1,388.40 and then at Wednesday’s low of $1,379.70.