Gold Futures Entering the Bear Zone

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Early trading on Tuesday Comex gold futures prices are moderately lower; on bearish outside market forces a firmer USD index. The near-term technical postures for gold continue firmly in the bearish camp. June Comex gold last trade was down $7.60 at $1,426.90 an ounce. Spot gold was last quoted a decrease by $2.50 at $1,428.75.

The overnight trade in Asia and Europe Tuesday was unproductive. New economic data from Europe was mixed Tuesday. The May German ZEW index came in at 36.4 versus 36.3 in April, but beneath expectations of 39.5. Though, European Union industrial production increased by 1.0% in March, the biggest monthly growth in 1.5 years. Respectable demand at a Spanish government bond auction is a sign that the European sovereign debt crunch is currently residing on the market. Moreover, Australia’s government budget was delivered Tuesday and it hinted that it possible to advance easing of that country’s monetary policy. That news plunged the Aussie dollar to an 11-month low against the USD.

U.S. economic data due for announcement on Tuesday contains the NFIB small business index, weekly Goldman Sachs and Johnson Redbook retail sales information and import and export price indexes.

The London previous P.M. fixing of $1,430.75 and A.M. gold fixing is $1,436.50.

On the daily chart gold prices is in a 7-month-old downtrend. The bulls are having an upside technical momentum, as of the bears still have technical advantages of gold in June. The bears downside prices under solid technical support is at $1,400.00. As for the bulls coming upside near-term prices above solid technical resistance is at the May high $1,487.20. First resistance was sighted overnight at $1,430.00 and then at Friday $1,444.90, while the first support was sighted at the overnight low of $1,418.50 and then at $1,410.00.