Gold Slightly Up On Position Evening Ahead of Major Events
(Kitco News) - Gold prices were slightly higher in early-afternoon U.S. trading Monday. The safe-haven yellow metal saw some position evening today, ahead of important marketplace events taking place in the coming days. Silver futures hit a six-week high today, are within a whisker of hitting the key $17.00 level, as the bulls have technical momentum on their side. August Comex gold futures were last up $1.50 an ounce at $1,304.20. July Comex silver was last up $0.219 at $16.96 an ounce.
U.S. President Donald Trump arrived in Singapore today to prepare for his summit meeting with North Korean President Kim Jong Un, regarding North Korea denuclearizing. Results of this meeting, which begins in less than 10 hours, are very much up in the air and hard for the markets to gauge. This adds an element of uncertainty in the marketplace early this week. Look for more active trading in many markets Tuesday, in the wake of the U.S.-North Korea meetings.
On Tuesday, the Federal Open Market Committee (FOMC) meets to decide upon U.S. monetary policy changes. It’s widely believed the FOMC will rise interest rates by 0.25% at the conclusion of the meeting Wednesday afternoon.
European markets were boosted in part today on notions the political situation in Italy has calmed down from earlier tensions, which suggests the Italian government could be friendlier toward the European Union.
This weekend’s Group of Seven meeting in Canada between the major industrialized countries of the world ended in discord, with the U.S. refusing to sign a G-7 statement. Trade and import tariffs were the major topic of discussion among the finance ministers of the major world economies. The trade-related spat between the U.S. and Canada that is becoming more vitriolic underscores the fading hopes the U.S. and its major trading partners can avoid an escalation in trade sanctions against each other. This matter could be a mixed bag for the gold market. From a safe-haven perspective, it’s bullish because of the tensions between the world’s largest economies. However, from a raw commodity perspective, it’s bearish because of the potential for reduced world trade in raw commodities.
There was no major U.S. economic data released Monday.
Technically, gold price action has turned choppy and sideways recently. This has negated a price downtrend and does suggest a near-term market bottom is in place. The gold bulls and bears are on a level overall near-term technical playing field. 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 last week’s high of $1,307.80 and then at the June high of $1,312.60. First support is seen at the June low of $1,293.10 and then at $1,286.80. Wyckoff's Market Rating: 5.0
The silver bulls 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 May low of $16.07. First resistance is seen at $17.00 and then at $17.11. Next support is seen at today’s low of $16.77 and then at $16.645. Wyckoff's Market Rating: 6.0.
July N.Y. copper closed down 460 points at 325.40 cents today. Prices closed nearer the session low on profit taking after hitting a 4.5-month high late last week. The copper bulls have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 334.20 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 309.00 cents. First resistance is seen at 327.50 cents and then at 330.00 cents. First support is seen at today’s low of 324.45 cents and then at 321.80 cents. Wyckoff's Market Rating: 7.0.