(Kitco News) - Gold and silver prices aremodestly higher in early-afternoon U.S. trading Tuesday. The metals saw correctiverebounds from recent selling pressure that saw gold hit a five-month low onMonday. If the gold bulls can push and close prices back above the critical$1,300.00 level, then a near-term market bottom would likely be in place. However,upbeat trader and investor risk appetite in the marketplace at present is stillmaking life difficult for the safe-haven metals bulls. June Comex gold futureswere last up $2.70 an ounce at $1,293.50. July Comex silver was last up $0.075at $16.595 an ounce.
Littlerisk aversion in the marketplace recently is driving many world stock indexesto multi-month highs. The apparent easing of U.S.-China trade tensions hastraders and investors in upbeat moods this week.
Thekey “outside markets” today find Nymex crude oil prices slightly up and hittinga new 3.5-year high earlier in the session, at $72.90 a barrel. Brent crude isnear $80.00 a barrel as the U.S. is set to once again sanction Iran, whichwould likely reduce that country’s oil sales on the world market. The up-trendingcrude oil market is one bullish underlying element for the metals markets.
Meantime,the U.S. dollar index is slightly lower at midday on a corrective pullback fromrecent good gains that saw prices hit a six-month high on Monday.
TheU.S. data-point highlight of the week will be Wednesday afternoon’s release ofthe FOMC minutes from the last meeting. The FOMC minutes have been amarkets-mover in the recent past.
Technically,gold prices are still in a two-month-old downtrend on the daily bar chart. Thegold bears have the overall near-term technical advantage. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at $1,300.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at theDecember low of $1,247.20. First resistance is seen at today’s high of$1,296.00 and then at $1,300.00. First support is seen at today’s low of$1,287.20 and then at this week’s low of $1,281.20. Wyckoff's Market Rating:3.5
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 May low of $16.07. Firstresistance is seen at today’s high of $16.70 and then at the May high of$16.865. Next support is seen at today’s low of $16.465 and then at this week’slow of $16.28. Wyckoff's Market Rating: 4.0.
JulyN.Y. copper closed up 310 points at 312.95 cents today. Prices closed nearerthe session high and hit a three-week high today. The copper bulls have gainedthe slight overall near-term technical advantage. Copper bulls' next upsideprice objective is pushing and closing prices above solid technical resistanceat the April high of 321.80 cents. The next downside price objective for thebears is closing prices below solid technical support at the May low of 301.40cents. First resistance is seen at today’s high of 314.85 cents and then at318.00 cents. First support is seen at 310.00 cents and then at this week’s lowof 306.50 cents. Wyckoff's Market Rating: 5.5.
By Jim WyckoffFor Kitco News
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