P.M. Kitco Metals Roundup: Comex Gold Ends Down as World Financial Markets Stabilize

3 June 2010, 2:44 p.m.
By Jim Wyckoff
Of Kitco News www.kitco.com

Comex gold futures are closed lower again Thursday, as investor risk appetite has somewhat increased this week amid more stable world financial markets--or at least no fresh, major developments that have further unsettled investors. This has put modest downside price pressure on gold, some of which is profit-taking from recent gains. August Comex gold closed down $12.30 an ounce at $1,208.30.

The selling interest in gold is still only modest, with no chart damage occurring. Recent history does show that any significant corrective pullback in gold prices has been a bargain-hunting buying opportunity for investors.

Selling interest in gold was lessened somewhat by a weakening Euro currency as the trading session progressed Thursday. The U.S. dollar index scored moderate gains Thursday. Gold was also somewhat buoyed by rising crude oil prices at the end of the trading session Thursday.

Look for gold prices to continue to be underpinned by safe-haven buying amid the ongoing European Union's debt crisis that has yet to fully play out. Traders continue to keep a close eye out for any further developments on the geopolitical stage, including the North Korea-South Korea row and the most recent Israeli-Palestinian flare-up.

Traders are awaiting Friday morning's key U.S. jobs data. That report is expected to show non-farm jobs gains of around 500,00 workers, with the employment rate seen falling by 0.2%. Trading could be active in the financial market following Friday's jobs report.

The London P.M. gold fixing was $1,215.00 versus the previous P.M. fixing of $1,215.00.

(Note: For and explanation of my "Wyckoff's Market Rating" in the technical commentary below, just send me an email at jwyckoff@kitco.com and I'll attach it and email it back to you.--Jim)

Technically, August gold futures prices closed nearer the session low Thursday. But the gold bulls still have the overall near-term technical advantage. There are still no early technical clues to suggest a market top is close at hand. Prices are in a four-month-old uptrend on the daily bar chart. Bulls' next upside technical objective is to produce a close above solid technical resistance at the record high of $1,251.40. Bears' next downside price objective is closing prices below technical support at the last "reaction low" on the daily bar chart, at $1,168.00. First resistance is seen at $1,220.00 and then at Thursday's high of $1,226.50 and then at this week's high of $1,230.60. Support is seen at Thursday's low of $1,202.40 and then at $1,200.00. Wyckoff's Market Rating: 7.0.

July silver futures closed down 38.4 cents at $17.931 an ounce Thursday. Prices closed nearer the session low and saw more profit taking. The silver bulls still have the overall near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at the last "reaction low" of $17.41. Bulls' next upside price objective is closing prices above solid technical resistance at the May high of $19.845 an ounce. First resistance is seen at $18.25 and then at $18.50. Next support is seen at Thursday's low of $17.825 and then at $17.50. Wyckoff's Market Rating: 6.5.

July N.Y. copper closed down 940 points at 294.65 cents Thursday. Prices closed nearer the session low and scored a bearish "outside day" down on the daily bar chart. Copper prices are in a seven-week-old downtrend on the daily bar chart and the bears have the solid overall near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. Bulls' next upside objective is pushing and closing prices above solid technical resistance at last week's high of 318.70 cents. First resistance is seen at 300.00 cents and then at 305.00 cents. First support is seen at Thursday's low of 292.55 cents and then at the May low of 290.55 cents. Wyckoff's Market Rating: 3.0.

 

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

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