Gold, Silver Prices Steady-Mixed in Quieter Summertime Trading
(Kitco News) - Gold and silver prices are narrowly mixed in subdued early-afternoon U.S. trading Tuesday. Some mild short covering by the shorter-term futures traders is featured in both markets today, to limit the downside. Still, the lack of major market news events in the world at present is allowing the chart-based traders to dominate—and the technicals for both gold and silver remain firmly bearish. August gold futures were last down $0.50 an ounce at $1,225.10. September Comex silver was up $0.08 at $15.505 an ounce.
World stock markets were mostly higher overnight. U.S. stock indexes are higher today and set contract or multi-month highs. Money continues to flow into the U.S. stock market amid an atmosphere of low risk aversion in the marketplace at present. That’s also bearish for safe-haven gold and silver markets.
Featured in the marketplace early this week is rising world government bond yields, on ideas the major central banks of the world will embark upon rolling back their heretofore easy monetary policies. Reports say the Bank of Japan is on the verge of scaling back its very accommodative policies.
The key “outside markets” today find Nymex crude oil prices higher and trading just below $69.00 a barrel. Meantime, the U.S. dollar index is slightly weaker today.
The big U.S. economic data point of the week is Friday’s first estimate of gross domestic product (GDP). The number is expected to come in at up a strong 4.4%. However, some analysts are even calling for a number of 5.0% or just above.
(NOTE: Follow me on Twitter: @jimwyckoff)
Technically, the gold bears have the solid overall near-term technical advantage. There are no strong, early clues to suggest a market bottom is close at hand. A three-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 $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at Monday’s high of $1,235.20 and then at $1,240.00. First support is seen at today’s low of $1,218.10 and then at last week’s low of $1,210.70. Wyckoff's Market Rating: 1.5
The silver bears have the solid overall near-term technical advantage. There are no early clues to suggest a market bottom is close at hand. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 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 today’s high of $15.63 and then at last week’s high of $15.90. Next support is seen at today’s low of $15.34 and then at last week’s low of $15.185. Wyckoff's Market Rating: 1.5.
September N.Y. copper closed up 635 points at 281.05 cents today. Prices closed nearer the session high today and scored a bullish “outside day” up on the daily bar chart. Heavy short covering was featured. The copper bears still have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the July low of 267.35 cents. First resistance is seen at today’s high of 283.50 cents and then at 285.00 cents. First support is seen at 277.50 cents and then at 275.00 cents. Wyckoff's Market Rating: 2.5.