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Gold Solidly Lower Amid “Risk-On” Trading Day

(Kitco News) - Gold prices ended the U.S. day session solidly lower Monday, as some keener risk appetite in the market place sunk the safe-haven metal. European and U.S. stock indexes rallied Monday on reports Greece and the European Union are very close to agreement on a debt-restructuring deal, after Greece submitted a revised debt-repayment plan during the weekend. August Comex gold was last down $17.70 at $1,184.20 an ounce. July Comex silver was last up $0.036 at $16.145 an ounce.

Greece and EU officials are met Monday to try to finalize a debt-restructuring deal. While no agreement was reached, both parties were reported upbeat about prospects for an agreement to be reached this week. However, there are some reports that said some EU officials do not believe a deal with Greece is imminent. Meantime, the European Central Bank Monday had to increase the emergency lending mechanism to Greece due to the increase in public withdrawals of cash from banks.

The U.S. dollar index was modestly higher to start the trading week, while crude oil prices were slightly lower. These two key “outside markets” were in a mildly bearish posture for the precious metals Monday.

China markets were closed Monday due to a holiday.

The London P.M. gold fix is $1,185.50 versus the previous A.M. fix of $1,193.70.

Technically, August gold futures prices closed nearer the session low. Gold bears have the overall near-term technical advantage. However, a two-week-old uptrend is now in place on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,205.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the June low of $1,161.00. First resistance is seen at $1,191.80 and then at $1,200.00. First support is seen at today’s low of $1,181.60 and then at $1,175.00. Wyckoff’s Market Rating: 2.5

July silver futures prices closed nearer the session high today. Silver bears have the overall near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.80 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the April low of $15.595. First resistance is seen at today’s high of $16.23 and then at last week’s high of $16.43. Next support is seen at today’s low of $15.985 and then at the June low of $15.77. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed down 10 points at 256.80 cents today. Prices closed near mid-range. Prices Friday hit a three-month low. Copper bears have the firm near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the June high of 270.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the March low of 255.40 cents. First resistance is seen at 260.00 cents and then at 261.65 cents. First support is seen at 255.40 cents and then at 253.00 cents. Wyckoff's Market Rating: 2.5.

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

 

 

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