Gold, Silver Rebound From Multi-Month Lows On Short Covering, Bargain Hunting, Weak USDX
(Kitco News) - Gold and silver prices were moderately higher in early-afternoon U.S. trading Tuesday, on some short covering in the futures markets and perceived bargain-buying in the cash markets. Gold hit a 12-month low overnight and silver scored a seven-month low on Monday. The U.S. dollar index was also lower today, which favored the precious metals market bulls. August gold futures were last up $13.10 an ounce at $1,254.80. July Comex silver was last up $0.205 at $16.035 an ounce.
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Reports overnight said Monday’s trading in gold exchange traded funds saw the largest outflow of money from those funds since late March. Gold and silver bulls remain stymied by their metals’ recent inability to rally in the face of the threat of a global trade war and some fresh instability in the European Union.
If the gold and silver markets can add to their Tuesday gains the rest of this week and close near their weekly highs on Friday, such would be a bullish clue that these metals have put in near-term market bottoms.
The U.S. Independence Day holiday is on Wednesday and many markets close early today. However, some important U.S. economic data is out later this week, including the Fed’s FOMC minutes on Thursday and the jobs report from the Labor Department on Friday.
The key “outside markets” today find the U.S. dollar index lower but still not far below the 12-month high hit last week. Meantime, Nymex crude oil prices are higher, hit a 3.5-year high and traded above $75.00 a barrel for a short time, before backing off on some profit taking.
Technically, gold prices also scored a bullish “outside day” up on the daily bar chart. The gold bears still have the firm overall near-term technical advantage. A 2.5-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,230.00. First resistance is seen at $1,260.00 and then at $1,268.00. First support is seen at $1,250.00 and then at $1,240.00. Wyckoff's Market Rating: 3.0
The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.50. First resistance is seen at Monday’s high of $16.18 and then at $16.25. Next support is seen at this week’s low of $15.80 and then at $15.75. Wyckoff's Market Rating: 2.0.
September N.Y. copper closed down 285 points at 291.55 cents today. Prices closed nearer the session low and hit another 11-month low today. The copper bears have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 305.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at 295.00 cents and then at this week’s high of 297.30 cents. First support is seen at today’s low of 290.80 cents and then at 287.50 cents. Wyckoff's Market Rating: 1.5.