Gold Slightly Down As Bulls Try to Stabilize Market

(Kitco News) - Gold pricesare slightly lower in early U.S. trading Wednesday. Bulls are fighting to holdthe yellow metal above critical chart support at $1,300.00. Buyer interest inthe precious metals continues to be squelched by a stronger U.S. dollar indexthat hit another 4.5-month high overnight. June Comex gold futures were last down$0.80 an ounce at $1,313.00. July Comex silverwas last up $0.023 at $16.495 anounce.

Thejust-released U.S. producer price index for April came in at up 0.1% fromMarch. The “core” rate that excludes food and energy was up 0.2%. Both numberswere forecast to come in at up 0.2%, month-on-month. The gold and silvermarkets were not impacted by this report.

Worldstock markets were mixed to firmer overnight. U.S. stock indexes are pointedtoward higher openings when the New York day session begins.

Themarketplace is still buzzing about the U.S. pulling out of the Iran nucleardeal, but markets, themselves, are not showing much reaction-with the exceptionof solidly higher crude oil prices that have basically recovered Tuesday’slosses.

The“outside markets” today find Nymex crude oil prices solidly higher, at a new3.5-year high, and trading near $71.00 a barrel. The U.S. dollar index isslightly higher and hit another 4.5-month high overnight.

U.S.economic data due for release Wednesday includes the weekly MBA mortgageapplications survey, the producer price index, monthly wholesale trade and theweekly DOE liquid energy stocks report.

Technically,June gold bulls and bears are on a level overall near-term technical playingfield. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at $1,338.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,300.00. First resistance is seen at this week’s high of $1,320.10and then at $1,325.00. First support is seen at the May low of $1,302.30 andthen at $1,300.00. Wyckoff's Market Rating: 5.0

Julysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $16.00. Firstresistance is seen at last week’s high of $16.62 and then at $16.75. Nextsupport is seen at this week’s low of $16.335 and then at $16.25. Wyckoff'sMarket Rating: 3.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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