Make Kitco Your Homepage

Gold Stages Modest Rally On Short Covering, Bargain Buying

Kitco News

(Kitco News) - Gold prices are moderately up in early-afternoon U.S. trading Tuesday. Some short covering in the futures market and perceived bargain buying in the cash market are featured. Also, the last trading day of the month today likely prompted some position evening in the metals, most of which being short covering. Still, the low risk aversion in the world marketplace at present continues to weigh on the safe-haven metals. December gold futures were last up $4.00 an ounce at $1,235.60. September Comex silver was last up $0.063 at $15.60 an ounce.

In focus this week is central bank meetings of the U.S., the Bank of Japan and the Bank of England. The BOJ today left its interest rates unchanged, as expected, but did surprise the marketplace by reiterating it will maintain its ultra-low interest rates and easy monetary policy. Only the BOE is expected to make any policy move—raising its interest rates slightly. The FOMC meeting of the Federal Reserve began Tuesday morning and ends Wednesday afternoon with a statement.

The key “outside markets” today find Nymex crude oil prices lower and trading just below $69.00 a barrel. Meantime, the U.S. dollar index is firmer today.

(NOTE: Follow me on Twitter: @jimwyckoff)

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bears still have the solid overall near-term technical advantage. There are still no strong, early clues to suggest a market bottom is close at hand.  A 3.5-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 $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,237.80 and then at last week’s high of $1,244.70. First support is seen at $1,230.00 and then at $1,225.00. Wyckoff's Market Rating: 2.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the solid overall near-term technical advantage. There are still no early clues to suggest a market bottom is close at hand. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at last week’s high of $15.70 and then at $15.90. Next support is seen at today’s low of $15.38 and then at the July low of $15.185. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed up 475 points at 283.90 cents today. Prices closed near the session high. The copper bears still have the firm 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 the July low of 267.35 cents. First resistance is seen at last week’s high of 283.70 cents and then at 285.00 cents. First support is seen at this week’s low of 275.85 cents and then at 273.00 cents. Wyckoff's Market Rating: 3.0.

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.

Precious Metal Charts

Follow Kitco News