Daily Resources Overview
Gold prices are moderately lower in midday U.S. trading Tuesday. Prices are seeing a normal downside correction after hitting a four-week high overnight. Still, the bulls are now in a much better technical posture following Monday’s good gains. June gold futures were last down $5.50 an ounce at $1,296.30. July Comex silver was last up $0.033 at $14.81 an ounce.
The U.S. stock market is seeing a good recovery today after solid losses Monday that drove the major indexes to six-week lows. World stock markets were mixed overnight, with European indexes mostly higher and Asian stocks mostly weaker. Many traders are now reckoning the U.S.-China trade war may have run its course, overall, regarding its bearish impact on the marketplace. A story from Barron’s today outlined the very minimal impact trade tariffs are having and will have on the U.S. And, President Trump today was sounding more upbeat on a U.S.-China trade deal being reached in the coming weeks. Nevertheless, last week’s trade negotiations between the delegation from China and the U.S. delegation seemed to have lost ground and moved farther away from a resolution, the opposite of the desired outcome. It is interesting that concessions agreed to by China were taken off the table. The explanation or motive behind that move could be the belief that China is content to walk away from the trade talks. This move by China prompted a strong response by the United States as Trump raised the current tariffs on $200 billion worth of Chinese imports from 10% to 25%. The fact that this action occurred in the middle of the two-day negotiation added to the current tension and certainly prolonged a resolution rather than bringing the two superpowers closer to an end of this economic conflict.
That’s a good scenario 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