Gold Down On Normal, Corrective Pullback
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(Kitco News) - Gold prices are solidly lower in early-afternoon trading Monday, on a corrective and profit-taking pullback from recent gains. Bulls can argue today’s pullback is actually healthy to keep the price uptrend in place longer. Improved trader/investor risk appetite to start the trading week is also a negative for the safe-haven metals. A rebound in the U.S. dollar index today is also a bearish daily element for the precious metals. August gold futures were last down $15.20 an ounce at $1,330.50. July Comex silver prices were last down $0.401 at $14.63 an ounce.
European and Asian stock indexes were mostly higher today. U.S. stock indexes are higher and have posted strong gains the past week and have bullish technical momentum on their side, to now suggest a test of the contract/record highs. That’s a negative for the competing metals asset class.
Trader and investor attitudes are more upbeat to start the trading week after the U.S. and Mexico late Friday reached a deal on immigration that avoided the U.S. slapping trade tariffs on its southern neighbor. However, progress on the U.S.-China trade war front remains elusive amid no signs the world’s two largest economies are coming closer to any agreement on trade matters. Discussions are ongoing, however.
The key “outside markets” today see Nymex crude oil prices near steady and trading around $54.00 a barrel. The U.S. dollar index is higher today on a corrective rebound from last week’s downside pressure.
Technically, August gold futures prices closed near the session low today. The bulls still have the firm overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,352.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,310.00. First resistance is seen at today’s high of $1,341.70 and then at $1,350.00. First support is seen at $1,325.00 and then at $1,320.00. Wyckoff's Market Rating: 6.5
July silver futures prices closed near the session low today. The silver bears have the overall near-term technical advantage and regained some momentum today. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $15.15 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $14.265. First resistance is seen at $14.75 and then at $15.00. Next support is seen at last week’s low of $14.565 and then at $14.50. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed up 360 points at 266.35 cents today. Prices closed near the session high on short covering after hitting a five-month low last week. The copper bears have the solid overall near-term technical advantage. Prices are in a steep seven-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 277.75 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 last week’s high of 267.45 cents and then at 270.00 cents. First support is seen at today’s low of 262.55 cents and then at last week’s low of 259.95 cents. Wyckoff's Market Rating: 2.0.