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Gold Firm In Lazy Summertime Trade; Busy U.S. Data Day Tuesday

Kitco News

(Kitco News) - Gold prices are modestly higher in early-afternoon U.S. trading Monday. A lack of new bullish fundamental inputs at mid-summer is making for subdued dealings. However, the U.S. economic data pace picks up markedly on Tuesday, which may mean some more active trade in the precious metals markets. August gold futures were last up $1.40 an ounce at 1,413.60. September Comex silver prices were last up $0.129 at $15.365 an ounce.

U.S. stock indexes were mixed at midday but did set new record highs in overnight action. The bull market run in stocks is somewhat curtailing investor interest in the competing asset class of precious metals.

There was some downbeat economic news coming out of China Monday, as its second-quarter gross domestic product rose by 6.3%, year-on-year, for the slowest growth pace in 27 years. This is leading to ideas China’s central bank will act to further stimulate the world’s second-largest economy. However, the weaker GDP report was somewhat offset by industrial production data for June that came out better than expected, at up 6.3%, year-on-year. The metals markets showed little reaction to this news.

There have been no significant developments on the geopolitical fronts in recent days, for which to provide a spark to the safe-haven gold and silver markets.

The key “outside markets” today see Nymex crude oil prices lower and trading just around $59.50 a barrel. The U.S. dollar index is firmer at midday today.  

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed near mid-range. The bulls have the firm overall near-term technical advantage and are keeping in place a seven-week-old uptrend 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 the June high of $1,442.90. 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 $1,421.60 and then at last week’s high of $1,429.40. First support is seen at today’s low of $1,409.30 and then at $1,400.00. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session high today. The silver bulls have the overall near-term technical advantage and are working on restarting the near-term price uptrend. 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 today’s high of $15.39 and then at $15.51. Next support is seen at today’s low of $15.185 and then at $15.00. Wyckoff's Market Rating: 6.0.

September N.Y. copper closed up 185 points at 271.25 cents today. Prices closed nearer the session high and hit a two-week high today. The copper bears have the 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 272.80 cents and then at 275.70 cents. First support is seen at today’s low of 268.55 cents and then at 265.00 cents. Wyckoff's Market Rating: 3.0.

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.