Gold Weaker As Greenback Pares Losses
(Kitco News) - Gold prices are modestly lower in early-afternoon U.S. trading Monday. Early gains in the safe-haven metal were lost when the U.S. dollar index rebounded from solid losses overnight and was trading just slightly lower at midday today. August Comex gold futures were last down $2.00 an ounce at $1,297.30. July Comex silver was last down $0.001 at $16.44 an ounce.
A solid rally in the U.S. stock market today, with the indexes hitting multi-week highs, also was a bearish element for the precious metals markets today, as it showed keener risk appetite is present in the world marketplace at present.
So far early this week, traders and investors are not reacting much to reports over the weekend that said the U.S. and China have made no progress in their trade talks. Meantime, the U.S. is getting heavily criticized by the European Union, Canada and Mexico for its protectionist trade posture.
The other key “outside market” today sees Nymex crude oil prices lower and trading just below $65.00 a barrel. The eroding crude oil market, which is arguably the leader of the raw commodity sector, is also a negative element for the metals.
Technically, gold prices are still in a two-month-old downtrend on the daily bar chart. The gold bears have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the May high of $1,332.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,286.80. First resistance is seen at today’s high of $1,302.30 and then at last week’s high of $1,312.60. First support is seen at last week’s low of $1,293.10 and then at $1,286.80. Wyckoff's Market Rating: 4.5
The silver bears have the slight 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 May low of $16.07. First resistance is seen at today’s high of $16.56 and then at $16.74. Next support is seen at last week’s low of $16.31 and then at $16.19. Wyckoff's Market Rating: 4.5.
July N.Y. copper closed up 335 points at 313.20 cents today. Prices closed nearer the session high today. The copper bulls have regained the slight overall near-term technical advantage. 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 314.05 cents and then at the May high of 314.85 cents. First support is seen at 310.00 cents and then at 307.50 cents. Wyckoff's Market Rating: 5.5.