(Kitco News) - Gold prices are moderately higher in early U.S. trading Tuesday, on some short covering, bargain hunting and even some safe-haven demand. A lower U.S. dollar index on this day is also working in favor of the precious metals bulls. June Comex gold was last up $9.10 at $1,192.10 an ounce. July Comex silver was last up $0.091 at $16.41 an ounce.

A feature in the world market place recently has been many bond markets selling off sharply, including U.S. Treasuries, which are solidly lower again Tuesday morning. European bond markets are under selling pressure Tuesday morning, following the rout in U.S. bond prices early this week. The bond market sell-off has spilled over into weakness in world stock markets. U.S. stock indexes are firmly lower in early electronic trading Tuesday. The world bond market jitters are providing some increased demand for safe-haven gold Tuesday.

The Euro currency is solidly higher and the U.S. dollar index is sharply lower Tuesday morning, partly on news Greece was able to make a 750 million Euro payment to the International Monetary Fund, which was due today. There was some worry among European traders that Greece would not be able to coming up with the funding. However, Greece and the European Union/IMF are still in hard negotiations on Greece’s debt restructuring.

The Paris-based OECD said Tuesday the U.S. is headed for an economic slowdown in the coming months, while the European Union will see economic growth increase. The OECD also said the economies of China, Canada, Russia and Brazil will see slowing economic growth in the coming months.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the NFIB small business index, and the monthly Treasury budget statement.

(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)

Wyckoff’s Daily Risk Rating: 5.5 (Trader and investor market risk aversion at present is not keen.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 10, with 1 being least risk-averse (most risk-on) and 10 being the most risk-averse (risk-off), and 5 being neutral.

The London A.M. gold fix is $1,184.45 versus the previous P.M. fix of $1,189.25.

Technically, June gold futures market bears still have the overall near-term technical advantage. Prices are in a down-trending channel on the daily bar chart. The gold bulls’ next upside near-term price objective is to produce a close above solid technical resistance at $1,214.90. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at the May low of $1,168.40. First resistance is seen at the overnight high of $1,196.30 and then at $1,200.00. First support is seen at $1,180.00 and then at last week’s low of $1,176.60. Wyckoff’s Market Rating: 3.0

July silver futures bears have the overall near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the May high of $16.765 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the April low of $15.595. First resistance is seen at Monday’s high of $16.55 and then at $16.765. Next support is at the overnight low of $16.12 and then at $16.00. Wyckoff’s Market Rating: 3.0.

By Jim Wyckoff, contributing to Kitco News; [email protected]
Follow me on Twitter @jimwyckoff

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