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Gold Sees Normal Chart Backing and Filling Monday

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(Kitco News) - Gold prices are near steady in midday U.S. trading Monday, on a normal downside correction and some chart consolidation after hitting a 13-month high late last week. Bulls still have the firm overall technical advantage, which means the near-term path of least resistance for prices remains sideways to higher. August gold futures were last down $0.60 an ounce at $1,343.90. July Comex silver prices were last up $0.052 at $14.855 an ounce.

Markets are quieter early this week as traders and investors worldwide are awaiting the Federal Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. FOMC members will discuss U.S. monetary policy. Most believe the Fed will not raise interest rates at this meeting, but members may lean toward a more dovish stance on monetary policy, to set the table for a rate hike in the coming few months.

There were no major news developments on the geopolitical front over the weekend, including no escalation of the U.S.-Iran tensions following last week’s attacks on big ships in the Gulf of Oman that the U.S. blamed on Iran. Iran’s leader did make some bellicose remarks about the U.S. and its nuclear ambitions, but the marketplace has brushed them off. Still, this matter is not likely to just fade away and remains a bullish element for the safe-haven metals.

European stock indexes were mostly firmer overnight, while Asian shares were mixed. The U.S. stock indexes are slightly higher in midday New York trading.

The key “outside markets” today see Nymex crude oil prices slightly weaker and trading just above $52.00 a barrel. Meantime, the U.S. dollar index is modestly down in afternoon U.S. trading. 

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed nearer the session high today on normal, corrective consolidation from recent gains. The bulls still have the firm overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,362.20. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,320.00. First resistance is seen at today’s high of $1,347.10 and then at $1,350.00. First support is seen at today’s low of $1,336.60 and then at $1,330.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures prices closed near the session high today. The silver bears have the overall near-term technical advantage. However, bulls are working on a fledgling price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the June 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 $15.00 and then at $15.15. Next support is seen at $14.75 and then at last week’s low of $14.625. Wyckoff's Market Rating: 3.5.

July N.Y. copper closed up 195 points at 264.95 cents today. Prices closed nearer the session high today on short covering. The copper bears still have the solid overall near-term technical advantage. Prices are in a 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 267.30 cents and then at the June high of 270.20 cents. First support is seen at today’s low of 261.55 cents and then at 260.00 cents. Wyckoff's Market Rating: 2.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.