Gold sees modest price weakness amid bearish charts

 New York (Jun 30)  Gold prices are a bit lower and silver prices a bit higher in early U.S. trading Wednesday. Bearish near-term technical charts and scant risk aversion in the marketplace as the first half of 2021 draws to a close today continue to keep buyers of the safe-haven metals squelched. August gold futures were last down $2.60 at $1,760.90 and September Comex silver was last up $0.079 at $25.975 an ounce.

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Today is the last trading day of the month and of the quarter, which makes it an extra important trading day from a technical perspective.

The U.S. economic data point of the day is the soon-to-be-released ADP national employment report for June, which is seen coming in at up around 550,000 jobs. That report is a precursor to Friday morning’s employment situation report for June from the Labor Department—arguably the most important U.S. economic data point of the month. The key non-farm payrolls number is forecast to come in at up 700,000 compared to a rise of 559,000 in May. The unemployment rate is seen at 5.6% versus 5.8% in May.

In overnight news, the Eurozone consumer price index for June came in at  up 1.9%, year-on-year, versus a rise of 2.0% in May.

Meantime, China’s official purchasing managers index fell to 50.9 in June from 51.0 in May. A reading above 50.0 suggests growth in the sector.

The key outside markets today see the U.S. dollar index slightly higher. Nymex crude oil futures are higher and trading around $73.75 a barrel. Energy traders are awaiting Thursday’s OPEC meeting. The yield on the benchmark U.S. Treasury 10-year note is presently fetching 1.465%.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the Chicago ISM business survey, pending home sales and the weekly DOE liquid energy stocks report.

Technically, gold futures bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,850.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,775.00 and then at this week’s high of $1,786.10. First support is seen at this week’s low of $1,750.10 and then at $1,735.00.

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