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Gold, Silver Near Steady Amid Opposing Outside Market Forces

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(Kitco News) - Gold and silver prices are trading near unchanged levels in early-afternoon U.S. trading Monday. A higher U.S. dollar index that scored another four-month high today was bearish for the precious metals. However, rallying crude oil prices that hit new 3.5-year highs today were a bullish element for the metals. June Comex gold futures were last down $0.40 an ounce at $1,314.30. July Comex silver was last up $0.001 at $16.52 an ounce.

Brent crude is approaching $76.00 a barrel and Nymex crude oil futures are above $70.00 a barrel today. There is growing concern the U.S. will not renew a deal struck with Iran in 2015 to curtail its nuclear arms development. The agreement expires Saturday. If the U.S. pulls out of the agreement, sanctions against Iran will be reapplied, including ostensibly sharply curbing Iranian oil exports. The rallying crude oil market is limiting the downside pressure on the precious metals market. Crude oil is the leader of the raw commodity sector and its “rising tide” is tending to “lift all boats,” to varying degrees—even if it means limiting the downside price pressures on some commodity markets.

It’s important to point out that trends in currency markets tend to be stronger and longer-lasting than price trends in other markets. Thus, the present uptrend in the U.S. dollar index and downtrend in the Euro currency could last for a while.

World stock markets were mostly firmer today. U.S. stock indexes were holding decent gains at midday. A lack of risk aversion in the world marketplace is a bearish element for the safe-haven gold and silver markets.

U.S. economic data due for release Monday was light and included the employment trends index and consumer credit.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls and bears are on a level overall near-term technical playing field. A close below major psychological support at $1,300.00 would open the door to a larger leg down in prices in the near term. However, right now it appears that strong support level will hold, for now. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,337.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,320.10 and then at $1,325.00. First support is seen at today’s low of $1,310.60 and then at the May low of $1,302.30. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.805. First resistance is seen at last week’s high of $16.62 and then at $16.75. Next support is seen at $16.25 and then at the May low of $16.07. Wyckoff's Market Rating: 3.5.

July N.Y. copper closed up 5 points at 308.60 cents today. Prices closed near mid-range today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 321.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 295.85 cents. First resistance is seen at today’s high of 310.45 cents and then at last week’s high of 312.15 cents. First support is seen at 305.30 cents and then at the May low of 301.95 cents. Wyckoff's Market Rating: 5.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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