Gold Slightly Up On Position Evening Ahead of Major Events

(Kitco News) - Gold priceswereslightly higher in early-afternoon U.S. trading Monday. The safe-haven yellowmetal saw some position evening today, ahead of important marketplace eventstaking place in the coming days. Silver futures hit a six-week high today, arewithin a whisker of hitting the key $17.00 level, as the bulls have technicalmomentum on their side. August Comex gold futures were last up $1.50 an ounceat $1,304.20. July Comex silver was last up $0.219 at $16.96 an ounce.

U.S.President Donald Trump arrived in Singapore today to prepare for his summitmeeting with North Korean President Kim Jong Un, regarding North Koreadenuclearizing. Results of this meeting, which begins in less than 10 hours,are very much up in the air and hard for the markets to gauge. This adds anelement of uncertainty in the marketplace early this week. Look for more activetrading in many markets Tuesday, in the wake of the U.S.-North Korea meetings.

OnTuesday, the Federal Open Market Committee (FOMC) meets to decide upon U.S.monetary policy changes. It’s widely believed the FOMC will rise interest ratesby 0.25% at the conclusion of the meeting Wednesday afternoon.

Europeanmarkets were boosted in part today on notions the political situation in Italyhas calmed down from earlier tensions, which suggests the Italian governmentcould be friendlier toward the European Union.

Thisweekend’s Group of Seven meeting in Canada between the major industrializedcountries of the world ended in discord, with the U.S. refusing to sign a G-7statement. Trade and import tariffs were the major topic of discussion amongthe finance ministers of the major world economies. The trade-related spatbetween the U.S. and Canada that is becoming more vitriolic underscores thefading hopes the U.S. and its major trading partners can avoid an escalation intrade sanctions against each other. This matter could be a mixed bag for thegold market. From a safe-haven perspective, it’s bullish because of thetensions between the world’s largest economies. However, from a raw commodityperspective, it’s bearish because of the potential for reduced world trade inraw commodities.

Thekey “outside markets” today find Nymex crude oil prices firmer and trading justabove $66.00 a barrel. The U.S. dollar index is slightly higher today followingrecent selling pressure.

Therewas no major U.S. economic data released Monday.

Technically,gold price action has turned choppy and sideways recently. This has negated aprice downtrend and does suggest a near-term market bottom is in place. Thegold bulls and bears are on a level overall near-term technical playing field.Gold bulls' next upside near-term price breakout objective is to produce aclose above solid technical resistance at the May high of $1,332.40. Bears'next near-term downside price breakout objective is pushing prices below solidtechnical support at the May low of $1,286.80. First resistance is seen at lastweek’s high of $1,307.80 and then at the June high of $1,312.60. First supportis seen at the June low of $1,293.10 and then at $1,286.80. Wyckoff's MarketRating: 5.0

Thesilver bulls 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 $17.00 and then at $17.11. Next support is seen attoday’s low of $16.77 and then at $16.645. Wyckoff's Market Rating: 6.0.

JulyN.Y. copper closed down 460 points at 325.40 cents today. Prices closed nearerthe session low on profit taking after hitting a 4.5-month high late last week.The copper bulls have the firm overall near-term technical advantage. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the December high of 334.20 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat this week’s low of 309.00 cents. First resistance is seen at 327.50 centsand then at 330.00 cents. First support is seen at today’s low of 324.45 centsand then at 321.80 cents. Wyckoff's Market Rating: 7.0.

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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