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Gold Pulls Back Amid 'Risk-On 'Attitudes' , Profit Taking

(Kitco News) - Gold prices are moderately lower in early U.S. trading Monday, as investor risk appetite has up-ticked to start the trading week. Some profit taking from recent gains is also weighing on the yellow metal. Last week gold prices hit a two-year high. August Comex gold was last down $9.00 an ounce at $1,285.80. July Comex silver was last up $0.009 at $17.41 an ounce.

World stock markets were mostly higher overnight and U.S. stock indexes are pointed to solidly higher openings when the New York day session begins. Focus is squarely on Thursday’s U.K. vote on whether that country stays in or leaves the European Union. The latest polls show a slight lead for the “stay” camp, and that’s causing world stock markets to rally Monday. However, the polls are close, which is still causing some uncertainty and anxiety in the marketplace, and will continue to do so until Thursday’s vote. A U.K. vote to leave the EU would likely create high uncertainty and tensions in world stock, currency and financial markets. Thursday’s vote could be the most important world markets event of the summer.

The key “outside markets” on Monday find the U.S. dollar index lower and Nymex crude oil prices higher. That’s a bullish daily factor for the stock and commodity markets.

There is no major U.S. economic data due for release Monday.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Wyckoff’s Daily Risk Rating: 2.5 (Trader and investor market risk aversion is not elevated today.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 5, with 1 being least risk-averse (most risk-on) and 5 being the most risk-averse (risk-off).

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures bulls still have the solid overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,318.90. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,275.20. First resistance is seen at today’s high of $1,296.80 and then at $1,300.00. First support is seen at the overnight low of $1,280.80 and then at 1,275.00. Wyckoff’s Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing futures 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 $16.75. First resistance is at the overnight high of $17.66 and then at last week’s high of $17.88. Next support is seen at last week’s low of $17.105 and then at $17.00. Wyckoff's Market Rating: 7.0.

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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