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P.M. Kitco Metals Roundup: Comex Gold Ends Near Steady; Bulls Have Gained Some Fresh Upside Technical Momentum

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Comex gold futures prices ended the U.S. day session near unchanged Monday. Prices did close near the session high as the gold market bulls have gained some fresh upside near-term technical momentum just recently. June gold last traded up $0.10 at $1,664.90 an ounce. Spot gold was last quoted up $1.70 an ounce at $1,665.00.  July Comex silver last traded down $0.441 at $30.97 an ounce.

The key “outside markets” were in a mildly bearish daily posture for the precious metals Monday. The U.S. dollar index traded firmer Monday but did hit a fresh two-month low overnight. Dollar index bulls are fading and that has been somewhat encouraging to the precious metals bulls. Meantime, crude oil futures prices were weaker Monday.

More weak economic data coming out of the European Union to start the trading week made for a mildly “risk off” trading day in the market place, and that was also a bit negative for gold and silver markets. The European stock markets were weaker overnight and that weakness spilled over into U.S. trading. Also on Monday the Standard & Poors credit agency downgraded several Spanish banks’ credit ratings. There are bond auctions in Spain and France this week that will again be closely scrutinized by the market place.

Still-weak demand for physical gold from India, the top world gold consumer, has been limiting the upside for the yellow metal recently.

The London P.M. gold fixing was $1,651.25, compared to the previous London P.M. fixing of $1,663.50.

Technically, June gold futures prices closed nearer the session high Monday. Gold bulls and bears are back on a level near-term technical playing field as the bulls have gained some fresh upside near-term technical momentum following Friday’s bullish weekly high close. However, the bulls have more work to do in the near-term to suggest an uptrend on the daily chart can be sustained. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the April high of $1,685.40. Bears’ next near-term downside price objective is closing prices below technical support at the April low of $1,613.00. First resistance is seen at last week’s high of $1,668.40 and then at $1,675.00. First support is seen at $1,650.00 and then at Monday’s low of $1,645.10. Wyckoff’s Market Rating: 5.0.

July silver futures closed down $0.456 an ounce at $30.955 Monday. Prices closed near mid-range. Silver prices are still in a two-month-old downtrend on the daily bar chart. The silver bears still have the near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $32.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $29.00. First resistance is seen at Monday’s high of $31.445 and then at last week’s high of $31.74. Next support is seen at Monday’s low of $30.60 and then at last week’s low of $29.925. Wyckoff’s Market Rating: 4.0.

July N.Y. copper closed down 5 points 382.45 cents today. Prices closed near mid-range and did hit a fresh four-week high early on. The key “outside markets” were in a bearish posture for copper Monday as the U.S. dollar index was firmer and crude oil prices were weaker. Copper bulls still have some upside technical momentum and have the slight near-term technical advantage. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at 395.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 370.00 cents. First resistance is seen at Monday’s high of 386.15 cents and then at 390.00 cents. First support is seen at Monday’s low of 379.65 cents and then at 377.50 cents. Wyckoff’s Market Rating: 5.5.