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Gold Prices See A Healthy Pause Monday

Kitco News

(Kitco News) - Gold prices are still near steady in midday U.S. action Monday, and have not moved much since trading began overnight. The yellow metal is seeing some normal, healthy, corrective consolidation after prices last Friday scored a six-year high. Silver prices are posting solid gains today, after that metal hit a 12-month peak on Friday. August gold futures were last up $0.20 an ounce at 1,426.90. September Comex silver prices were last up $0.245 at $16.44 an ounce.

Gold and silver bulls are in the driver’s seat at mid-summer, and more pausing action in near-term price uptrends this week would not be surprising.

Geopolitical tensions are a bit higher to start the trading week, on news that Iran’s military late Friday seized a British oil tanker near the Strait of Hormuz, apparently in response to the U.K. capturing an Iranian vessel a couple weeks ago. Iran’s confrontation with the U.S. and the U.K. will probably escalate in the coming weeks, with the concern in the marketplace being a major U.S. military strike against Iran, which could disrupt oil shipping in the Persian Gulf. Such would be bullish for the safe-haven metals.

Focus of traders and investors remains on the major central banks of the world and their lean toward more accommodative monetary policies amid worries about slowing global economic growth. The European Central Bank holds its regular monetary policy meeting on Thursday. Next week, the U.S. Federal Reserve’s Open Market Committee (FOMC) has its money policy meeting. Both central banks are expected to ease their monetary policies at the meetings. That’s also a bullish scenario for the metals.

The key “outside markets” today see Nymex crude oil prices higher and trading around $56.00 a barrel. Meantime, the U.S. dollar index is firmer today.  

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures prices closed near mid-range. The bulls still have the solid overall near-term technical advantage and are keeping in place a two-month-old uptrend on the daily bar chart. Prices last Friday hit a six-year high. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,454.40. 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 $1,430.00 and then at $1,442.00. First support is seen at $1,420.00 and then at $1,410.00. Wyckoff's Market Rating: 7.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session high and closed at a five-month high close today. Prices Friday hit a 12-month high. The silver bulls have the firm overall near-term technical advantage. Prices are in an accelerating seven-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.835. First resistance is seen at last week’s high of $16.625 and then at $16.75. Next support is seen at $16.25 and then at today’s low of $16.195. Wyckoff's Market Rating: 7.5.

September N.Y. copper closed down 310 points at 272.15 cents today. Prices closed near the session low today on a pullback after hitting a nine-week high on Friday. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the last week’s high of 280.30 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 275.95 cents and then at 278.00 cents. First support is seen at 270.00 cents and then at last week’s low of 268.20 cents. Wyckoff's Market Rating: 5.0.

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.