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P.M. Kitco Roundup: Gold Ends Firmer, Shows Little Reaction to FOMC Minutes

Wednesday July 9, 2014 2:20 PM

(Kitco News) - Gold prices ended the U.S. day session with moderate gains Wednesday and showed a muted reaction to the afternoon release of the latest minutes of the FOMC meeting of the Federal Reserve. Chart-based buying and some safe-haven demand were featured. August Comex gold was last up $7.20 at $1,324.00 an ounce. Spot gold was last quoted up $3.20 at $1,322.75. December Comex silver last traded up $0.076 at $21.15 an ounce.

The focal point for the market place this week is the FOMC meeting minutes from the Federal Reserve that were out Wednesday afternoon. The minutes showed the Fed is likely to end its monthly bond-buying program in October of this year. This news was not unexpected and the market place showed little reaction. Traders and investors gleaned little fresh insight on when the Fed might decide to raise its interest rates for the first time in years.

Traders and investors are keeping a closer eye on the Middle East, as Israel has launched a military offensive on the Gaza strip. Gold may be seeing some safe-haven demand due to the latest military action by Israel. This situation is a potential powder-keg that could further incite unrest in other parts of the Middle East.

The London P.M. gold fix was $1,322.75 versus the previous P.M. fixing of $1,323.00.

Technically, August gold futures prices closed near mid-range Wednesday. Prices are trading choppy amid some chart consolidation. Gold market bulls have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,334.90. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at Wednesday’s high of $1,328.30 and then at $1,334.90. First support is seen at Wednesday’s low of $1,318.70 and then at Tuesday’s low of $1,314.30. Wyckoff’s Market Rating: 6.0

December silver futures prices closed nearer the session low Wednesday. The bulls still have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $21.385 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.70. First resistance is seen at Wednesday’s high of $21.29 and then at last week’s high of $21.385. Next support is seen at this week’s low of $20.945 and then at last week’s low of $20.87. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 105 points at 324.65 cents Wednesday. Prices closed near the session low and saw mild profit taking after hitting a 5.5-month high on Tuesday. Copper bulls still have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the January high of 334.40 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 316.50 cents. First resistance is seen at today’s high of 327.45 cents and then at this week’s high of 329.10 cents. First support is seen at this week’s low of 323.70 cents and then at 322.50 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

 

 

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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