Gold sees some safe-haven buying as geopolitics comes into play

Gold prices are firmer in midday U.S. trading Tuesday, on some mild safe-haven demand on news a major dam and power station in Ukraine was blown up, causing major flooding in the region and raising concerns about crops and food being destroyed by flooding. Most agree the situation is a significant escalation in the Russia-Ukraine war. August gold was last up $5.10 at $1,979.40 and July silver was down $0.02 at $23.61.

The Russians are blaming Ukraine for the destruction of the dam, which is in Russian-controlled territory in Ukraine. The Ukrainians said the Russians are responsible. The largest nuclear power plant in Europe is not far from the dam, but it is upstream. The marketplace will be monitoring this situation very closely the next couple days.

Asian and European stock markets were mixed overnight. U.S. stock indexes are mixed at midday. U.S. equities bulls remain resilient as the major stock indexes trade at or near their highs for the year.

The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil prices are weaker and are trading around $71.75 a barrel. The marketplace is taking note of oil’s inability to rally in the aftermath of Saudi Arabia’s surprise move pledging to unilaterally cut its oil production by 1 million barrels per day starting in July. Nymex crude prices are presently near where they were just prior to the weekend Saudi news. A Wall Street Journal story headline today reads: “Commodity prices signal slump.” Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.704%.

Technically, August gold futures bulls have the overall near-term technical advantage amid recent choppy trading. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at the May low of $1,949.60. First resistance is seen at $1,985.00 and then at $2,000.00. First support is seen at today’s low of $1,970.30 and then at this week’s low of $1,953.80. Wyckoff’s Market Rating: 6.5

July silver futures bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at the May low of $22.785. First resistance is seen at $24.00 and then at last week’s high of $24.12. Next support is seen at this week’s low of $23.32 and then at $23.00. Wyckoff’s Market Rating: 5.0.

July N.Y. copper closed up 30 points at 377.10 cents today. Prices closed nearer the session high. The copper bears still have the overall near-term technical advantage. However, a six-week-old downtrend on the daily bar chart has been negated. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 354.50 cents. First resistance is seen at last week’s high of 378.90 cents and then at 385.00 cents. First support is seen at 370.00 cents and then at 365.00 cents. Wyckoff’s Market Rating: 4.0.