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P.M. Kitco Metals Roundup: Comex Gold Ends Slightly Higher as Market Tries to Stabilize and Consolidate

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Comex gold futures prices ended the U.S. day session slightly higher Thursday as the yellow metal and the entire market place tried to stabilize amid the ongoing European Union sovereign debt and financial crisis. Trading Friday will be extra important following Thursday’s quieter day. The key question on precious metals traders’ minds: Will bargain hunters step up to support the markets, or will follow-through technical selling drive prices still lower? June gold last traded up $2.30 at $1,596.50 an ounce. Spot gold was last quoted up $7.00 an ounce at $1,597.00.  July Comex silver last traded down $0.046 at $29.195 an ounce.

The U.S. dollar index trading near steady Thursday on a corrective pullback from recent gains. The greenback has benefited recently on fresh safe-haven demand due to the EU situation. Crude oil futures prices traded slightly higher Thursday on short covering after hitting a 4.5-month low on Wednesday. Crude oil remains in a bearish fundamental and technical posture. These two key markets will continue to have a daily influence on the precious metals markets.

There was no major fresh news coming out of the EU Thursday. EU officials did decide to disburse the latest tranche of bailout funds to Greece, after there had been some talk Wednesday Greece may not get those funds due to the present disarray of the Greek government. There are several EU countries’ elections in the coming weeks and months, and they may turn out to be referendums on continuing to aid the debt-laded EU countries, or even if those debt-laden countries want to continue their own austerity programs. This is a very serious matter and suggests the situation will only deteriorate in the coming months. It is still my bias that any serious escalation in the EU debt crisis that threatens to become a worldwide debt contagion would be bullish for safe-haven gold. It appears Goldman Sachs agrees with my notion.  Reports overnight said Goldman Sachs has reiterated it is still bullish the gold market, with a six-month forecast of $1,840.00 an ounce.

The London P.M. gold fixing was $1,598.50 versus the previous London P.M. fixing of $1,582.50.

Technically, June gold futures prices closed near mid-range Thursday and tried to stabilize and consolidate. Prices Wednesday hit a 17-week low. Serious near-term chart damage has been inflicted this week. Gold bears have the solid near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,644.00. Bears’ next near-term downside price objective is closing prices below technical support at the December low of $1,528.60. First resistance is seen at Wednesday’s high of $1,607.00 and then at $1,613.00. First support is seen at Thursday’s low of $1,585.00 and then at Wednesday’s low of $1,578.50. Wyckoff’s Market Rating: 3.0.

July silver futures prices closed near mid-range Thursday. Prices Wednesday hit a 17-week low. Silver prices are in a nine-week-old downtrend on the daily bar chart. The silver bears have the solid near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $30.39 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 Wednesday’s high of $29.50 and then at $30.00. Next support is seen Thursday’s low of at $28.94 and then at Wednesday’s low of $28.615. Wyckoff’s Market Rating: 3.0.

July N.Y. copper closed up 310 points 369.05 cents Thursday. Prices closed nearer the session high and saw some short covering today after prices Wednesday hit a three-week low. Copper bulls and bears are on a level near-term technical playing field. Copper bulls’ next upside breakout objective is pushing and closing prices above solid technical resistance at last week’s high of 386.15 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the April low of 357.75 cents. First resistance is seen at Thursday’s high of 371.35 cents and then at 375.00 cents. First support is seen at Thursday’s low of 364.35 cents and then at this week’s low of 361.00 cents. Wyckoff’s Market Rating: 5.0.