Gold Back Above $1,300 On Short-Covering, Bargain-Hunting
(Kitco News) - Gold prices were firmer and pushed back above the key $1,300.00 level in early-afternoon U.S. trading Tuesday. Some short covering in the futures market and bargain hunting in the cash market were featured, following recent selling pressure. Metals traders are looking for some new fundamental news to help drive prices. August Comex gold futures were last up $5.50 an ounce at $1,302.80. July Comex silver was last up $0.119 at $16.55 an ounce.
The U.S. stock indexes are at or near 2.5-month highs early this week, as traders and investors are in generally upbeat, risk-taking moods at present. The lack of risk aversion in the marketplace at present has been bearish for safe-haven gold and silver markets.
So far early this week, the marketplace is mostly looking past U.S. tensions with its major trading partners that threaten to boil over into a worldwide trade war. Such could change in a hurry, however.
The key “outside markets” today find Nymex crude oil prices firmer on a corrective bounce and trading just above $65.00 a barrel. The U.S. dollar index is weaker today on a corrective pullback from recent gains that last week pushed prices to a 10.5-month high.
Technically, the gold market scored a bullish “outside day” up on the daily bar chart today. Gold prices are still in a two-month-old downtrend on the daily bar chart. The gold bears still have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the May high of $1,332.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,286.80. First resistance is seen at last week’s high of $1,312.60 and then at $1,320.00. First support is seen at last week’s low of $1,293.10 and then at $1,286.80. Wyckoff's Market Rating: 4.5
The silver bears still have the slight overall near-term technical advantage. 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 the May low of $16.07. First resistance is seen at $16.74 and then at the May high of $16.865. Next support is seen at last week’s low of $16.31 and then at $16.19. Wyckoff's Market Rating: 4.5.
July N.Y. copper closed up 640 points at 319.90 cents today. Prices closed near the session high and hit a six-week high today. The copper bulls have the overall near-term technical advantage and gained more power today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 301.00 cents. First resistance is seen at the April high of 321.80 cents and then at 325.00 cents. First support is seen at 317.50 cents and then at 315.00 cents. Wyckoff's Market Rating: 6.5.