Bears Holding Gold Market In A Tight Grip

(Kitco News)- Goldprices are mildly down in early U.S. trading Monday, while silver prices areslightly higher. Both metals remain firmly in the grasp of the market bears,amid a lack of news that would drive demand toward the safe-haven metals.December gold futures were last down $1.60 an ounce at $1,231.10. SeptemberComex silver was last up $0.022 at $15.515 an ounce.

Worldstock markets were mostly lower overnight. U.S. stock indexes are pointedtoward narrowly mixed openings when the New York day session begins. It’s beenquieter summertime trading in the Northern Hemisphere equities marketsrecently.

Infocus this week will be central bank meetings of the U.S., the Bank of Japanand the Bank of England. Only the BOE is expected to make any policymove-raising its interest rates slightly. The FOMC meeting of the FederalReserve begins Tuesday and ends Wednesday afternoon with a statement.

Thekey “outside markets” today find Nymex crude oil prices higher and tradingaround $70.00 a barrel. The U.S. dollar index is weaker early today.

U.S.economic data due for release Monday includes pending home sales and the Texasmanufacturing outlook survey.

Technically,gold bears have the solid overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,250.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,200.00. Firstresistance is seen at Friday’s high of $1,236.50 and then at last week’s highof $1,244.70. First support is seen at Friday’s low of $1,226.30 and then atthe July low of $1,221.00. Wyckoff's Market Rating: 1.5

Septembersilver futures bears have the solid overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $16.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.00. Firstresistance is seen at last week’s high of $15.70 and then at $15.90. Nextsupport is seen at last week’s low of $15.34 and then at the July low of $15.185.Wyckoff's Market Rating: 1.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@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.

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