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Gold Languishing, Awaiting New Fundamentals

Kitco News

(Kitco News) - Gold prices are slightly lower in midday U.S. trading Tuesday. The precious metal is feeling some mild pressure from of a solid rebound in the U.S. dollar index, which hit a three-week high today. Still, the gold and silver market bulls are also looking for a new fundamental news spark to reignite price rallies. August gold futures were last down $1.10 an ounce at 1,398.90. September Comex silver prices were last up $0.055 at $15.105 an ounce.

The greenback has seen a recent boost from some stronger U.S. economic data, including last Friday’s employment report that was very upbeat and gave pause to those reckoning a U.S. interest rate cut was on the doorstep.

The U.S. economic highlight of this week will be Fed Chairman Jerome Powell speaking to the U.S. House of Representatives on U.S. monetary policy on Wednesday morning. He follows that up with testimony to a Senate panel on Thursday. Powell will surely be asked by lawmakers what he thinks about President Trump bashing him recently, including pondering firing him. Powell may also shed some light on when the next U.S. interest rate increase is coming, or not.

In a geopolitical matter that is presently on the back burner of the marketplace, Iran continues its sabre rattling against the U.S. The regime said Monday it intends to further breach its nuclear agreement with the United Nations unless the U.S. eases economic sanctions against Iran.

The other key “outside market” today see Nymex crude oil prices higher and trading around $58.00 a barrel.  

U.S. economic data due for release Tuesday was again very light, to provide no direction to markets.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed nearer the session high today. The bulls still have the overall near-term technical advantage, but a five-week-old uptrend on the daily bar chart is in jeopardy and bulls need to show fresh power soon to keep it alive. There is also the potential for a bearish double-top reversal pattern forming on the daily chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,428.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,384.70. First resistance is seen at today’s high of $1,402.40 and then at this week’s high of $1,409.90. First support is seen at today’s low of $1,387.50 and then at the July low of $1,384.70. Wyckoff's Market Rating: 6.5.

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session high today. The silver bears have regained the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.625 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at this week’s high of $15.15 and then at $15.25. Next support is seen at $15.00 and then at last week’s low of $14.915. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed down 355 points at 262.35 cents today. Prices closed nearer the session low and hit a four-week low today. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 275.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the June low of 259.95 cents. First resistance is seen at today’s high of 265.90 cents and then at this week’s high of 268.90 cents. First support is seen at today’s low of 261.20 cents and then at 259.95 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.