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Gold, silver weaker but well up from daily lows

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(Kitco News) - Gold and silver prices are lower in midday U.S. trading Monday, but have made a good recovery from the sharp losses seen in early trading, which took gold prices to a four-week low. The safe-haven bulls are struggling amid a global trading environment that sees little risk aversion. Some chart-based selling pressure is also seen now, as the near-term technical postures for both metals have deteriorated, especially in gold. August gold futures were last down $14.00 at $1,864.40 and July Comex silver was last down $0.101 at $28.045 an ounce.

Global stock markets were mixed but mostly higher overnight. U.S. stock indexes are pointed mixed at midday. The S&P 500 and Nasdaq stock index futures hit record highs today. Chinese and Australian markets were closed for holidays. 

The U.S. data point of the week is the Federal Reserve’s FOMC meeting that begins Tuesday morning and ends Wednesday afternoon with a statement. While no major changes are expected for U.S. monetary policy, focus will be on the Fed’s tenor on inflation prospects and when the central bank will start to taper its very easy money policies. Fed officials recently have hinted they will begin discussing a timetable for reducing its bond-buying program (quantitative easing) sooner rather than later.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are up and trading around $71.25 a barrel after hitting a 2.5-year high of $71.70 overnight. The key U.S. Treasury 10-year note yield is fetching around 1.5%.

There was no major U.S. economic data released Monday.

Live 24 hours gold chart [Kitco Inc.]

Technically, August gold futures bulls still have the overall near-term technical advantage. However, they are fading as a nine-week-old price uptrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,810.70. First resistance is seen at today’s high of $1,879.70 and then at $1,900.00. First support is seen at today’s low of $1,845.70 and then at $1,840.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

July silver futures bulls have the overall near-term technical advantage. However, a nine-week-old uptrend on the daily bar chart has stalled out. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $28.90 an ounce. The next downside price objective for the bears is closing prices below solid support at $26.00. First resistance is seen at last week’s high of $28.445 and then at $28.71. Next support is seen at today’s low of $27.565 and then at $27.31. Wyckoff's Market Rating: 6.5.

July N.Y. copper closed down 135 points at 452.40 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. However, a four-week-old downtrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 470.70 cents. The next downside price objective for the bears is closing prices below solid technical support at 425.00 cents. First resistance is seen at last week’s high of 459.50 cents and then at 465.00 cents. First support is seen at the June low of 442.95 cents and then at 440.00 cents. Wyckoff's Market Rating: 7.0.

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.