Gold Prices Pull Back

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May 14, 2019 5:30pm NYSE:GLD

fine gold bars

From Jim Wyckoff: (Kitco News) – Gold prices are slightly lower in early-morning U.S. trading Tuesday. Prices did poke to a four-week high overnight. The yellow metal is seeing a normal corrective pullback following Monday’s good gains, which put the bulls in a much better technical posture. June gold futures were last down $2.00 an ounce at $1,299.80. July Comex silver was last up $0.038 at $14.815 an ounce.


World stock markets were mixed overnight, with European indexes mostly higher and Asian stocks mostly weaker. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The world stock markets are trying to stabilize following Monday’s rout in the wake of the failed U.S. trade talks and the imposition of new tariffs by the U.S. and China against each other.

There has been technical damage inflicted on U.S. stock indexes to suggest they have put in near-term tops and can now only trade sideways at best for at least the time being. That’s good news for precious metals market bulls, as the safe-haven metals are a competing asset class with equities.

The key “outside markets” today see the U.S. dollar index firmer. The greenback bulls have faded a bit recently. Meantime, Nymex crude oil prices are higher and trading around $62.00 a barrel. There are technical clues the oil market has put in a near-term top.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, and import and export prices

Technically, the gold bulls and bears are back on a level overall near-term technical playing field. A nearly three-month-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,314.70. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at the overnight high of $1,304.20 and then at $1,310.00. First support is seen at the overnight low of $1,296.60 and then at $1,290.00. Wyckoff’s Market Rating: 5.0

July silver futures bears have the firm overall near-term technical advantage. Prices are still in a nearly three-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.15 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at $14.875 and then at $15.00. Next support is seen at Monday’s low of $14.615 and then at the May low of $14.57. Wyckoff’s Market Rating: 3.0.


The SPDR Gold Shares (GLD) fell $0.03 (-0.02%) in after-hours trading Tuesday. Year-to-date, GLD has declined -0.96%, versus a 6.75% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #1 of 35 ETFs in the Precious Metals ETFs category.


This article is brought to you courtesy of Kitco.


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