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Gold Up, Hits 4-Week High, On More Safe-Haven Demand

(Kitco News) - Gold prices ended the U.S. day session up and hit a four-week high Monday. Safe haven demand was featured amid growing concerns about the U.K. vote next week regarding an exit from the European Union (Brexit). August Comex gold was last up $11.10 an ounce at $1,287.00. July Comex silver was last up $0.115 at $17.445 an ounce.

Worldwide trader and investor anxiety is a bit elevated at present. Falling world government bond yields have also spooked the global stock market bulls the past few trading sessions. World equity markets were mostly weaker Monday, with U.S. stock indexes also lower in afternoon New York trading.

Traders and investors are looking forward to this week’s meeting of the Federal Reserve’s Open Market Committee (FOMC). There is not a clear consensus on whether the Fed will raise interest rates at this meeting. However, the recent very weak U.S. jobs report for May has many market watchers speculating the Fed will not make a rate hike in June.

There were no major U.S. economic reports released Monday. However, the pace of U.S. economic data releases picks up rapidly on Tuesday.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed nearer the session high and hit a four-week high today. The gold bulls have the solid overall near-term technical advantage and have upside momentum. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the May high of $1,308.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,236.90. First resistance is seen at today’s high of $1,290.30 and then at $1,300.00. First support is seen at $1,280.00 and then at today’s low of $1,275.20. Wyckoff’s Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures prices closed nearer the session high and hit a four-week high today. Prices also scored a bullish “outside day” up on the daily bar chart. The silver market bulls have the overall near-term technical advantage and have momentum. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the May high of $18.06 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the June low of $15.83. First resistance is seen at $17.50 and then at $17.70. Next support is seen at today’s low of $17.105 and then at $17.00. Wyckoff's Market Rating: 6.5.

July N.Y. copper closed up 215 points at 205.20 cents today. Prices closed nearer the session high today and saw short covering in a bear market. Prices last week hit a four-month low. The copper bears 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 June high of 214.50 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the January low of 195.80 cents. First resistance is seen at today’s high of 206.60 cents and then at 208.55 cents. First support is seen at last week’s low of 201.30 cents and then at 200.00 cents. Wyckoff's Market Rating: 2.0.

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 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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