Gold Sees More Profit Taking Amid Big Events

(Kitco News) - Gold pricesended the U.S. day session solidly lower on some more profit taking andtechnical chart consolidation after hitting a seven-week high earlier thisweek. Three major marketplace occurrences Thursday failed to move the marketsin a significant manner. The gold and silver market bulls are still holding thenear-term technical advantage amid price uptrends in both metals. August Comex gold was last down $13.60 an ounce at $1,279.60. JulyComex silver was lastdown $0.19 at $17.43 an ounce.

Big marketplaceevents that took place Thursday saw FBI director James Comey testify to theU.S. Senate. Comey on Wednesday released a prepared text for his statement tothe Senate. Comey's remarks Thursday were deemed by most as not seriouslydamning to President Trump. Still, Comey's question-and-answer session did notput the President in a good light at all. Gold prices did move up from thedaily lows during Comey's question-and-answer session.

The EuropeanCentral Bank held its regular monetary policy meeting Thursday and did not makeany changes. ECB president Draghi's press conference was scrutinized for clueson futures ECB policy moves, but was not a big markets-mover.

Finally, thereare U.K. general elections Thursday, the results of which are not yet out. Itis expected that the ruling party of Prime Minister Theresa May will win.

The key outsidemarkets on Thursday saw the U.S. dollar index higher on a corrective and shortcovering rebound after hitting a six-month low Wednesday. The greenback bearsare still in firm near-term technical control as dollar index prices are in athree-month-old downtrend.

The other"outside market" on Thursday saw Nymex crude oil futures prices slightly higherafter Wednesday's steep sell off that produced fresh near-term technicaldamage. A bearish weekly U.S. liquid energy stocks report dropped the oilmarket Wednesday. The oil market bears have the firm overall near-termtechnical advantage as prices are well below $50.00 a barrel.

Technically, Augustgold futures prices closed nearer thesession low today. The gold bulls still have the overall near-term technicaladvantage. Prices are in a four-week-old uptrend on the daily bar chart. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at $1,300.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at$1,250.00. First resistance is seen at today's high of $1,291.50 and then at$1,300.00. First support is seen at today's low of $1,273.50 and then at1,260.00. Wyckoff's Market Rating: 6.5

Julysilver futures prices closed nearer the session low and sawmore profit taking after hitting a six-week high on Tuesday. The silver marketbulls still have the slight overall near-term technical advantage. Prices arein a four-week-old uptrend on the daily bar chart. Silver bulls' next upsideprice breakout objective is closing prices above solid technical resistance at$18.00 an ounce. The next downside price breakout objective for the bears isclosing prices below solid support at $16.75. First resistance is seen at thisweek's high of $17.745 and then at $18.00. Next support is seen at today's lowof $17.285 and then at $17.00. Wyckoff's Market Rating: 5.5.

July N.Y. copper closed up 570 points at 260.85 cents today.Prices closed near the session high and closed at a five-week high close today.The copper bulls have gained the slight overall near-term technical advantage.Copper bulls' next upside price objective is pushing and closing prices abovesolid technical resistance at 270.00 cents. The next downside price objectivefor the bears is closing prices below solid technical support at the May low of247.25 cents. First resistance is seen at 261.05 cents and then at 263.00cents. First support is seen at 257.50 cents and then at today's low of 254.30cents. Wyckoff's Market Rating: 5.5.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

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 precious metal products, 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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