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Gold futures were relatively unchanged during morning trade in Europe today, after a steady Monday. Stocks grew for the thirteenth out of the last sixteen sessions, for another record-high close.

Gold futures for delivery in August traded for $1 254.3 per troy ounce at 8:32 GMT on the COMEX in New York today, up 0.03%. Daily high and low stood at $1 256.3 and $1 250.1 per troy ounce, respectively. Yesterday gold added 0.11%, after on Friday the contract closed for a 0.5% weekly gain.

Meanwhile, silver contracts for July stood at $19.050 per troy ounce, for a decline of 0.08%. Daily high and low were at $19.115 and $19.020 per troy ounce, respectively. Yesterday silver gained 0.13%, while last week the contract added about 1.5%.

“Gold appears to be steadying after the May slump,” Howard Wen, analyst at HSBC Securities (USA) Inc., wrote in a note, cited by Bloomberg. “We do expect the recent price decline to encourage some emerging market bullion demand but we do not believe this has fed into more stable gold prices, at least not yet.”

The US economy posted better-than-expected results on a number of indicators last week. Employment was reported near pre-recession peaks, while the services and manufacturing sectors, accounting for the bulk of US GDP, continued to expand more quickly than before.

More US data is due this week. Jobless claims will be posted on Thursday, with expectations of unchanged weekly figures at 310 000 new applications and 2.6 million continuing claims. Also on Thursday, retail sales are expected to post a preliminary 0.4% monthly growth for May, after muted 0.1% increase the previous month. Later, PPI for May will be revealed on Friday, and analysts project a 0.3% gain on a monthly basis and 1.9% year-on-year.

Stocks, SPDR

US stocks extended gains yesterday, for all three major indices to close Wall Streets session at new highs. S&P added 0.09% for the record-high close of 1951.27. Nasdaq 100, which excludes financial institutions, also registered the highest close on record at 3795.74, with a daily gain of 0.03%. Dow 30 Industrial was at 16 943.10, also at an all-time high, after a 0.11% rise.

Elsewhere, Dow Jones Euro Stoxx 50, a gauge of European stocks, also scored the highest close of all time on Monday. The index stood at 3305.13 after a daily gain of 0.33%. Today, by 8:14 GMT the gauge stood for a further 0.06% gain.

Meanwhile, assets at the SPDR Gold Trust – the largest gold-backed exchange-traded fund, remained at 787.08 for a fifth session on Monday. The fund has regained almost 11 tons over the last two weeks, after dropping more than 30 for the previous month, as the US economy scored improving results.

Technical view

According to Binary Tribune’s daily analysis, in case Gold August futures on the COMEX manage to breach the first resistance level at $1 256.9, the contract will probably continue up to test $1 260.0. In case the second key resistance is broken, the precious metal will likely attempt to advance to $1 262.6.

If the contract manages to breach the first key support at $1 251.2, it will probably continue to slide and test $1 248.6. With this second key support broken, the movement to the downside may extend to $1 245.5.

Meanwhile, silver futures for July will see their first resistance level at $19.176. If it is breached, the contract will meet next resistance at $19.285, and then the third level at $19.381.

Silver will find its first support point at $18.971. Should it be breached, the second level of support is estimated at $18.875 and the third at $18.766.

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