In early U.S. trading Wednesday, Comex gold futures prices are reasonably higher, maintained in part on small covering and decrease in USD index. Comex June gold last traded up $12.00 at $1,390.90 an ounce. Spot gold was last cited up $9.70 at $1,391.75.
The gold bulls still strongly defending the April low of $1,321.50, basis June Comex futures. The longer gold prices trade in a shifting and an indirect fashion above that key level, the higher the odds the April low will make a significant market price bottom.
Growing U.S. Treasury bond and note yields have attracted the eyes of the market this week. The ten-year U.S. T-Note yield increased near 2.17% on Tuesday, the highest in over a year. The speedily growing Treasury yields are a sign that the market now has faith in the Federal Reserve’s years-old, forceful monetary stimulus programs. There has been a fresh run of more than predicted U.S. economic data that moreover maintains notions the Fed might ease down big monthly bond-buying program. Information that gold prices have reached this bearish improvement in relative pace is as well recommended that the gold sellers are still tired after the big downside push in April.
European stocks were weaker overnight, pressured in part on a downbeat German employment report. A report from the OECD said the Euro zone will see a deeper-than-expected economic contraction this year than it saw last year. Asian stock markets were mostly firmer overnight, following the lead of the stronger U.S. stock market on Tuesday.
U.S. economic data will be released Wednesday containing the weekly MBA mortgage applications review, Goldman Sachs retail sales reports and the weekly Johnson Redbook.
The London the previous P.M. fixing of $1,376.50 and the fresh A.M. gold fixing is $1,384.50.
Prices are still in a 7.5-month-old downtrend on the daily bar chart. June gold futures bears still have the total near-term technical advantage, but the bulls are showing flexibility. More improvements in gold in the near term would produce the starting’s of a big and bullish double-bottom reversal pattern on the daily bar chart. The gold Bears’ next near-term downside breakout price objective is closing prices below 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 $1,400.00 and then at last week’s high of $1,413.30, as for the first support is sighted at the overnight low of $1,379.10 and then at Tuesday’s low of $1,372.10.