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Gold Steady As Market Pauses After Recent Gains

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(Kitco News) - Gold prices were ending the U.S. day session near unchanged Wednesday, as the market steadied and saw some chart consolidation after posting recent good gains that put prices at a three-week high Tuesday. August Comex gold was last down $0.40 an ounce at $1,241.50. September Comex silver was last up $0.022 at $16.29 an ounce.

The gold bulls are encouraged their market has shown resilience this week, in the face of generally higher world stock markets including U.S. stock indexes that are at or near record highs.

A main bullish input for the precious metals markets has been a seriously eroding U.S. dollar index. The index was firmer early today, on a mild bounce after hitting a 10-month low Tuesday. The dollar bears have the solid overall near-term technical advantage amid a price downtrend that has been in place all year long. 

The other “outside market” on Wednesday saw Nymex crude oil futures firmer and trading around $47.00 a barrel. Recent upside price action suggests a market bottom is in place for oil, and that has also been supportive for the raw commodity sector, including the precious metals. However, talk of OPEC over-production and big U.S. stockpiles will likely limit the upside for crude.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed nearer the session high today. While the gold bears still have the slight overall near-term technical advantage there are chart clues that a near-term bottom is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,244.10 and then at $1,250.00. First support is seen at today’s low of $1,235.10 and then at this week’s low of $1,227.50. Wyckoff's Market Rating: 4.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session high and hit another two-week high today. While the silver bears still have the overall near-term technical advantage recent price action begins to suggest a near-term market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $16.50 and then at $16.75. Next support is seen at $16.00 and then at this week’s low of $15.935. Wyckoff's Market Rating: 3.0.

September N.Y. copper closed down 195 points at 271.05 cents today. Prices closed nearer the session low today on profit taking after closing at a 3.5-month high close on Tuesday. The copper bulls still have the overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 284.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at this week’s high of 273.75 cents and then at 275.00 cents. First support is seen at 270.00 cents and then at this week’s low of 268.35 cents. Wyckoff's Market Rating: 6.0.

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.