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P.M. Kitco Metals Roundup: Gold Ends Slightly Lower as Stronger Greenback Limits Buying Interest

Monday August 25, 2014 1:37 PM

(Kitco News) - Gold prices ended the U.S. day session slightly lower in quieter trading Monday. A surging U.S. dollar index has been a bearish weight on gold the past couple weeks. The dog days of summer are winding down on this last unofficial week of summer. Look for subdued dealings in many markets the rest of this week, barring any fresh, significant geopolitical developments. December Comex gold was last down $1.30 at $1,279.00 an ounce. Spot gold was last quoted down $2.90 at $1,278.50. December Comex silver last traded down $0.049 at $19.415 an ounce.

The U.S. dollar index hit an 11-month high and the Euro currency sunk to an 11-month low Monday, following remarks from European Central Bank president Mario Draghi, who last Friday in Jackson Hole, Wyoming, sounded very dovish commentary on ECB monetary policy. Draghi’s comments suggest the ECB will initiate further monetary stimulus measures, including quantitative easing, in the coming months, or sooner. Fed Chair Janet Yellen also spoke in Jackson Hole Friday, but the market place deemed her remarks more balanced, regarding U.S. monetary policy.

In other news Monday, the August German Ifo consumer confidence survey came in at a reading of 106.3 versus expectations for a reading of 107.0. The downbeat report is yet another sign the European Union economy has slipped back into recession and is another sign of more monetary policy stimulus coming from the ECB soon.

There are still geopolitical matters that have the attention of the market place. U.S. military action in Iraq and the rise of the ISIS fighters in the region is a big worry for Western powers. Russia-Ukraine tensions and the fighting on the Gaza strip are also in the background.

Technically, December gold futures prices closed nearer the session high. Gold bears have the overall near-term technical advantage as a seven six-week-old downtrend is in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,250.00. First resistance is seen at $1,283.90 and then at $1,292.00. First support is seen at last week’s low of $1,273.40 and then at $1,270.00. Wyckoff’s Market Rating: 4.0

December silver futures prices closed nearer the session low and closed at a nine-week low close Monday. Silver prices are in a seven-week-old downtrend on the daily bar chart. The bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.00. First resistance is seen at $19.65 and then at last week’s high of $19.765. Next support is seen at last week’s low of $19.355 and then at $19.25. Wyckoff's Market Rating: 2.5.

December N.Y. copper closed up 145 points at 323.75 cents Monday. Prices closed nearer the session high. Copper bulls now have the slight 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 329.45 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of 310.20 cents. First resistance is seen at Monday’s high of 324.60 cents and then at 326.00 cents. First support is seen at Monday’s low of 321.55 cents and then at 320.00 cents. Wyckoff's Market Rating: 5.5.

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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