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P.M. Kitco Metals Roundup: Gold Ends Weaker Amid Bearish Outside Markets; Major Data Just Ahead

Tuesday July 30, 2013 1:46 PM

(Kitco News) - Comex gold futures prices ended the U.S. day session with modest losses in quieter, pre-report trading Tuesday. The key “outside markets” turned bearish for the precious metals on the day, as the U.S. dollar index was higher and crude oil prices were lower. Gold and silver prices were also pressured by some position evening and technical chart consolidation ahead of some big economic data due out in the next few days that will most certainly be markets-moving. December gold was last down $5.00 at $1,324.60 an ounce. Spot gold was last quoted down $2.20 at $1,325.50. September Comex silver last traded down $0.179 at $19.685 an ounce.

Key worldwide economic data points are approaching fast. The highlights this week are the U.S. Federal Reserve’s FOMC meeting that began Tuesday and ends Wednesday afternoon. Most expect the Fed will leave its monetary policy unchanged and continue to lean well to the dovish side at this week’s meeting. Many Fed watchers are actually looking ahead to the next FOMC meeting, in September, at which time the central bank could begin its much-anticipated “tapering” of its monthly bond-buying program, also called quantitative easing.

For the U.S. jobs report that is released Friday morning, the key non-farm payrolls figure is forecast to rise by around 175,000 workers in July. The overall unemployment rate is expected to have declined by 0.1%, to 7.5%.

Also, the U.S. gross domestic product reading for the second quarter will also be released Wednesday. European traders are awaiting the European Central Bank and Bank of England monthly meetings that occur on Thursday. Asian traders and investors are awaiting manufacturing data from China, due out Thursday.

The U.S. dollar index saw some short covering Tuesday, after Monday hitting a five-week low. The greenback bears still have the overall near-term chart advantage. Meantime, Nymex crude oil futures prices were solidly lower Tuesday morning and hit a three-week low. While the crude oil bulls still have the overall near-term technical advantage, they are fading badly and need to show fresh power soon to keep their near-term technical edge.

The London P.M. gold fix is $1,324.15 versus the previous P.M. fixing of $1,329.75.

Technically, December gold futures prices closed near mid-range Tuesday. Bears have the overall near-term technical advantage. However, a four-week-old price uptrend is barely in place on the daily chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at Monday’s high of $1,338.50 and then at $1,350.00. First support is seen at Tuesday’s low of $1,317.00 and then at $1,308.90. Wyckoff’s Market Rating: 3.0

September silver futures prices closed near mid-range Tuesday. Prices are in a four-week-old uptrend on the daily chart, but just barely. Bulls need to show fresh power very soon to keep the price uptrend in place. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $20.595 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.215. First resistance is seen at Tuesday’s high of $19.875 and then at $20.00. Next support is seen at Tuesday’s low of $19.50 and then at $19.215. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed down 700 points at 303.80 cents Tuesday. Prices closed near the session low and closed at a fresh four-week low close. The key “outside markets” were bearish for copper Tuesday as the U.S. dollar index was higher and crude oil prices were lower. Copper bears have gained the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the July high of 323.40 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 298.55 cents. First resistance is seen at 305.00 cents and then at 307.50 cents. First support is seen at Tuesday’s low of 303.65 cents and then at 302.50 cents. Wyckoff's Market Rating: 2.0.

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By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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 precious metal products, 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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