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P.M. Kitco Metals Roundup: Comex Gold Ends Up on Short Covering, Bargain Hunting amid Chart Consolidation

Monday June 11, 2012 2:23 PM

Comex gold futures ended the U.S. day session moderately higher Monday, on some short covering and bargain hunting, and on some chart consolidation following recent choppy daily price action. August gold last traded up $7.30 at $1,598.70 an ounce. Spot gold was last quoted up $3.00 an ounce at $1,598.25.  July Comex silver last traded up $0.104 at $28.575 an ounce.

Risk appetite in the market place tried to improve to start the new trading early Monday. However, as the trading day wore on investors were in the mood to become more risk- averse. Asian and European stock markets were somewhat boosted overnight on some optimism coming out of the weekend news on the European Union sovereign debt crisis front. However, details of Euro zone finance ministers’ Spain bank bailout deal worth 100 billion Euros do worry the market place. Spanish 10-year bond yields were still above 6% Monday. Traders and investors are also awaiting Greek elections next Sunday. There was weak economic data coming out of Italy Monday to add to notions the EU is in overall economic recession.

In other news Monday, Goldman Sachs forecasts the raw commodity sector has bottomed out and commodity prices will begin to trend higher in coming months.

The U.S. dollar index trading slightly weaker Monday but up from its early-session low. Prices did hit a fresh three-week low overnight and the bulls are fading a bit. Meantime, Nymex crude oil futures prices were lower Monday after starting out the day on the upside. Crude oil remains in an overall bearish fundamental and technical posture. 

The London P.M. gold fix is $1,584.00 versus the previous London P.M. fixing of $1,576.50.

Technically, August gold futures prices closed near mid-range Monday and saw some chart consolidation amid recent choppy trading. Gold market bulls and bears are struggling for near-term technical control with neither having much of an edge. However, bears do have the slight overall near-term technical advantage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the June high of $1,642.40. Bears' next near-term downside price objective is closing prices below solid technical support at the May low of $1,529.30. First resistance is seen at Monday’s high of $1,609.30 and then at the April low of $1,616.30. First support is seen at Monday’s low of $1,582.70 and then at $1,575.00. Wyckoff’s Market Rating: 4.5

July silver futures closed up $0.089 an ounce at $28.56 today. Prices closed near mid-range today. Bears have the overall near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above major psychological resistance at $30.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the December low of $26.50. First resistance is seen at Monday’s high of $29.00 and then at $29.50. Next support is seen at Monday’s low of $28.255 and then at $28.00. Wyckoff's Market Rating: 4.0.

July N.Y. copper closed up 485 points 333.35 cents Monday. Prices closed near the session low. Short covering in a bear market was featured. Copper bears still have the overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 345.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the contract low of 308.00 cents. First resistance is seen at 335.00 cents and then at 337.50 cents. First support is seen at 330.00 cents and then at Friday’s low of 326.35 cents. Wyckoff's Market Rating: 3.0.

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By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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 precious metal products, 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.

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