Gold, Silver Near Steady Amid Opposing Outside Market Forces

(Kitco News) - Gold and silver prices aretrading near unchanged levels in early-afternoon U.S. trading Monday. A higherU.S. dollar index that scored another four-month high today was bearish for theprecious metals. However, rallying crude oil prices that hit new 3.5-year highstoday were a bullish element for the metals. June Comex gold futures were lastdown $0.40 an ounce at $1,314.30. July Comex silver was last up $0.001 at $16.52an ounce.

Brentcrude is approaching $76.00 a barrel and Nymex crude oil futures are above$70.00 a barrel today. There is growing concern the U.S. will not renew a dealstruck with Iran in 2015 to curtail its nuclear arms development. The agreementexpires Saturday. If the U.S. pulls out of the agreement, sanctions againstIran will be reapplied, including ostensibly sharply curbing Iranian oilexports. The rallying crude oil market is limiting the downside pressure on theprecious metals market. Crude oil is the leader of the raw commodity sector andits “rising tide” is tending to “lift all boats,” to varying degrees-even if itmeans limiting the downside price pressures on some commodity markets.

It’simportant to point out that trends in currency markets tend to be stronger andlonger-lasting than price trends in other markets. Thus, the present uptrend inthe U.S. dollar index and downtrend in the Euro currency could last for awhile.

Worldstock markets were mostly firmer today. U.S. stock indexes were holding decentgains at midday. A lack of risk aversion in the world marketplace is a bearishelement for the safe-haven gold and silver markets.

U.S.economic data due for release Monday was light and included the employmenttrends index and consumer credit.

Technically,the gold bulls and bears are on a level overall near-term technical playingfield. A close below major psychological support at $1,300.00 would open thedoor to a larger leg down in prices in the near term. However, right now itappears that strong support level will hold, for now. Gold bulls' next upsidenear-term price breakout objective is to produce a close above solid technicalresistance at $1,337.60. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,300.00. Firstresistance is seen at today’s high of $1,320.10 and then at $1,325.00. Firstsupport is seen at today’s low of $1,310.60 and then at the May low of$1,302.30. Wyckoff's Market Rating: 5.0

Thesilver bears have the overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $17.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the December low of $15.805.First resistance is seen at last week’s high of $16.62 and then at $16.75. Nextsupport is seen at $16.25 and then at the May low of $16.07. Wyckoff's MarketRating: 3.5.

JulyN.Y. copper closed up 5 points at 308.60 cents today. Prices closed nearmid-range today. The copper bulls and bears are on a level overall near-termtechnical playing field. Copper bulls' next upside price objective is pushingand closing prices above solid technical resistance at the April high of 321.80cents. The next downside price objective for the bears is closing prices belowsolid technical support at the March low of 295.85 cents. First resistance isseen at today’s high of 310.45 cents and then at last week’s high of 312.15cents. First support is seen at 305.30 cents and then at the May low of 301.95cents. Wyckoff's Market Rating: 5.0.

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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