Gold, Silver See Tepid Short-Covering Bounces
(Kitco News) - Gold and silver prices are modestly higher in early-afternoon U.S. trading Monday. Mild support comes from some bargain hunting in the cash market and short covering in the futures market, following recent losses that drove the two precious metals prices to multi-month lows last week. The metals were well down from their daily highs as the U.S. dollar index recovered early losses to trade higher on the day today. August gold futures were last up $3.60 an ounce at $1,259.40. July Comex silver was last up $0.071 at $16.14 an ounce.
World stock markets were mostly higher today, as there continues to be little risk aversion in the marketplace at present, despite a U.S.-China trade war that is escalating and reports that the U.S.-North Korea relationship is breaking down. The gold and silver markets would benefit from a firm dose of geopolitical uncertainty.
There were no fresh, major markets-moving news developments over the weekend. Key U.S. economic data released this week includes the producer price index on Wednesday and the consumer price index on Thursday.
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The other key “outside market” today finds Nymex crude oil prices slightly lower and trading around $73.50 a barrel. The rallying oil market is a bullish element for the precious metals markets.
Technically, the gold bears still have the firm overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at today’s high of $1,266.90 and then at $1,270.00. First support is seen at today’s low of $1,255.70 and then at $1,250.00. Wyckoff's Market Rating: 3.0.
The silver bears still have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.55. First resistance is seen at today’s high of $16.25 and then at $16.40. Next support is seen at $16.00 and then at last week’s low of $15.80 and then at $15.75. Wyckoff's Market Rating: 2.5.
September N.Y. copper closed up 255 points at 284.95 cents today. Prices closed near mid-range and saw short covering after hitting a 12-month low last week. The copper bears still have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 270.00 cents. First resistance is seen at today’s high of 287.70 cents and then at 290.00 cents. First support is seen at today’s low of 281.50 cents and then at last week’s low of 278.25 cents. Wyckoff's Market Rating: 1.5.