Gold Slightly Up After Big Downdraft Last Friday
(Kitco News) - Gold prices areslightly higher in early-afternoon U.S. trading Monday. The market saw a tepidcorrective and short-covering bounce after sharp losses suffered on Friday thatsaw the yellow metal hit a six-month low. There was also some risk aversion inthe marketplace today that might also be giving gold some mild support. August Comex gold futures were last up $2.00 an ounce at $1,280.40. July Comex silver was last down $0.025 at $16.45 an ounce.
Amajor bearish weight on the precious metals recently has been the resurgentU.S. dollar index, which hit an 11-month high last Friday.
Muchof the raw commodity sector got hit hard last Friday on world trade concerns.Traders are still in a risk-averse mood early this week. World trade warworries continue to be on the front burner of the marketplace, as the world’stwo largest economies-the U.S. and China-square off. Unfortunately for the goldmarket bulls, their yellow metal now wants to act like a raw commodity insteadof a safe-haven store of value. Still, the trade tensions worldwide couldsupport the gold market if the situation deteriorates further.
Thekey “outside markets” today see the U.S. dollar index firmer and not far belowlast week’s 11-month high. Meantime, Nymex crude oil prices are modestly higherand are trading just above $65.00 a barrel.
Therewas no major U.S. economic data released today.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,the gold bears have regained the overall near-term technical advantage. Anine-week-old downtrend has been re-established on the daily bar chart. Goldbulls' next upside near-term price breakout objective is to produce a close inAugust futures above solid technical resistance at $1,300.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at the December low of $1,251.90. First resistance is seen at$1,285.00 and then at $1,293.10. First support is seen at last week’s low of$1,277.90 and then at $1,275.00. Wyckoff's Market Rating: 4.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Silverprices closed nearer the session low today. The silver bears have regained theoverall near-term technical advantage after big losses last Friday. Silverbulls' next upside price breakout objective is closing July futures pricesabove solid technical resistance at last week’s high of $17.35 an ounce. Thenext downside price breakout objective for the bears is closing prices belowsolid support at the May low of $16.07. First resistance is seen at today’shigh of $16.425 and then at $16.50. Next support is seen at $16.31 and then at$16.19. Wyckoff's Market Rating: 4.0.
JulyN.Y. copper closed down 365 points at 310.80 cents today. Prices closed nearerthe session low. The copper bulls have lost their overall near-term technicaladvantage amid the big sell off recently. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at theJune high of 331.55 cents. The next downside price objective for the bears isclosing prices below solid technical support at 300.00 cents. First resistanceis seen at 313.00 cents and then at today’s high of 315.15 cents. First supportis seen at today’s low of 309.65 cents and then at 307.00 cents. Wyckoff'sMarket Rating: 5.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@kitco.comwww.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 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.