Gold, Silver Prices Get Slight Lift As Greenback Sets Back

(Kitco News) - Gold and silver prices weretrading modestly higher in early-afternoon U.S. dealings Wednesday. A sharpdrop in the U.S. dollar index today was a bit supportive for the preciousmetals markets. However, the USDX hit a 10.5-month high on Tuesday. Severalfundamental factors are in play in the marketplace at mid-week, but few seem tobe having much impact on the precious metals at this point. June Comex goldfutures were last up $2.20 an ounce at $1,306.20. July Comex silver was last up$0.167 at $16.54 an ounce.

Thekey data point for today was the national employment report for May, which camein at up 178,000. The report came in close to the forecast for up 187,000. TheADP report is the precursor to the more important Labor Department employmentsituation report on Friday morning. The precious metals and other markets paidlittle attention to today’s ADP.

Thereare still geopolitical concerns at mid-week. The U.S. continues to ratchet upthe pressure on China, regarding trade issues. Worries about Italy’s future inthe European Union are also causing anxiety among European investors. Moredevelopments on these key matters are likely yet this week, which could movemarkets, including the safe-haven metals.

Theother key “outside market” today finds Nymex crude oil prices solidly higher ona corrective bounce after slumping to a six-week low on Tuesday. The recentsteep downdraft suggests the market has put in at least a near-term top.

Technically,gold prices are still in a two-month-old downtrend on the daily bar chart, butjust barely. This week’s price action will determine whether the downtrendcontinues or is negated. The gold bears have the slight overall near-termtechnical advantage. Gold bulls' next upside near-term price breakout objectiveis to produce a close above solid technical resistance at the May high of$1,332.40. Bears' next near-term downside price breakout objective is pushingprices below solid technical support at the May low of $1,286.80. Firstresistance is seen at last week’s high of $1,312.60 and then at $1,320.00.First support is seen at today’s low of $1,300.00 and then at this week’s lowof $1,296.60. Wyckoff's Market Rating: 4.5

Thesilver bulls and bears are on a level overall near-term technical playingfield. Silver bulls' next upside price breakout objective is closing pricesabove solid technical resistance at $17.00 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at theMay low of $16.07. First resistance is seen at today’s high of $16.58 and thenat last week’s high of $16.74. Next support is seen at this week’s low of$16.31 and then at $16.19. Wyckoff's Market Rating: 5.0.

JulyN.Y. copper closed up 65 points at 306.90 cents today. Prices closed nearer thesession high today after hitting a seven-week low early on. The copper bullsand bears are on a level overall near-term technical playing field, amid recentchoppy trading. Copper bulls' next upside price objective is pushing andclosing 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 308.00 cents and then at 310.00 cents. First support is seen at 305.00cents and then at today’s low of 301.00 cents. 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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