The prices of gold and silver were relatively lower on Wednesday in early-afternoon U.S. trading. Gold was at a six-month low with silver dropping to a seven-week low as of June 27. However, the gold market oversold on a near-term technical basis. It’s due for a corrective rebound shortly. The big rally in crude oil is also recently a solid clue that the raw commodity sector bottomed out with better days on the horizon.
Concerns about a global trade war involving the major worldwide economies are causing tensions for the global equities markets. Fortunately, many wouldn’t consider the current trading environment as risk-adverse. That is, not enough to augment safe-haven gold and silver markets.
The major outside markets of today find the index of the U.S. dollar solidly higher. However, prices of Nymex crude oil are much higher, hitting a three-year high, trading above $73.00 a barrel. On Tuesday, the U.S. announced its stance of zero tolerance for Iran exporting their oil to other countries.
Gold and Silver Bears and Bulls
Technically, gold bears have the comprehensive near-term technical advantage. A downtrend of two and a half months is on the daily bar chart. Although, the market is currently short-term oversold. It’s due for a corrective bounce. The next upside near-term price breakout objective for the gold bulls is to create a close above substantial technical resistance of $1,286.80. The following short-term downside price breakout objective of the bears is shoving prices beneath solid technical support at $1, 251.90, the December low. The first resistance is at $1,261.90, today’s high, and then at $1,269.40, Tuesday’s high. Wyckoff’s Market Rating: 2.5.
The firm overall near-term technical advantage belongs to the silver bears. The next upside price breakout objective for the silver bulls is closing prices above technical resistance at $17.00 per ounce. The bear’s next downside price breakout objective is closing prices below support at $16.01, the May low. The first resistance is at $16.29 and then at $16.50. The next support is at $16.07 and $16.00. Wyckoff’s Market Rating: 2.5.