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Gold Prices Stabilize Monday After Late-Week Drubbing

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(Kitco News) - Gold prices are trading near steady in early-afternoon U.S. trading Monday. The bulls are trying to “right the ship” following the strong selling pressure seen late last week. Working in the precious metals bulls’ favor to start the trading week are a slightly lower U.S. dollar index and weaker U.S. stock index prices. June gold futures were last up $0.90 an ounce at $1,276.60. July Comex silver prices hit another 5.5-month low today and were last up $0.042 at $14.43 an ounce.

Gold prices lost around $35.00 in value last Thursday and Friday, producing some near-term technical damage. Bulls needed to stabilize their market early this week in order to avoid a solid, fresh leg down in prices from occurring. Bulls have more work to do in the near term to suggest that market can trade at least sideways on the charts.

World stock markets were mostly weaker Monday. U.S. stock indexes are lower at midday today. The U.S.-China trade war drags on, with any agreement between the two largest economies in the world not seen imminent. This matter will likely continue to be a drag on world stock markets until it’s come to a successful conclusion.

The other key “outside market” today sees Nymex crude oil prices are trading slightly up and just below $63.00 a barrel. 

Technically, the gold bears have gained the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at $1,280.00 and then at $1,285.00. First support is seen at the overnight low of $1,273.30 and then at $1,270.00. Wyckoff's Market Rating: 4.5

July silver futures bears have the solid overall near-term technical advantage. Prices are in a three-month-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at Friday’s high of $14.555 and then at $14.75. Next support is seen at the overnight low of $14.355 and then at $14.30. Wyckoff's Market Rating: 2.0.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed near mid-range and hit a two-week low today. An uptrend on the daily bar chart was negated late last week and the bears now 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 $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,267.30. First resistance is seen at $1,280.00 and then at $1,287.00. First support is seen at today’s low of $1,273.30 and then at $1,267.30. Wyckoff's Market Rating: 4.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures prices closed near the session high and hit a 5.5-month low today. The silver bears have the solid overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at $14.50 and then at $14.75. Next support is seen at today’s low of $14.355 and then at $14.30. Wyckoff's Market Rating: 2.0.

July N.Y. copper closed down 130 points at 272.55 cents today. Prices clos mid-range today. The copper bears have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 285.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 256.10 cents. First resistance is seen at today’s high of 275.05 cents and then at last week’s high of 277.75 cents. First support is seen at the May low of 270.90 cents and then at 270.00 cents. Wyckoff's Market Rating: 3.0.

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