Gold Weaker As Greenback Pares Losses

(Kitco News) - Gold prices aremodestly lower in early-afternoon U.S. trading Monday. Early gains in thesafe-haven metal were lost when the U.S. dollar index rebounded from solidlosses overnight and was trading just slightly lower at midday today. August Comex gold futures were last down $2.00 an ounce at $1,297.30. July Comex silver was last down $0.001 at $16.44 an ounce.

Asolid rally in the U.S. stock market today, with the indexes hitting multi-weekhighs, also was a bearish element for the precious metals markets today, as itshowed keener risk appetite is present in the world marketplace at present.

Sofar early this week, traders and investors are not reacting much to reportsover the weekend that said the U.S. and China have made no progress in theirtrade talks. Meantime, the U.S. is getting heavily criticized by the EuropeanUnion, Canada and Mexico for its protectionist trade posture.

Theother key “outside market” today sees Nymex crude oil prices lower and tradingjust below $65.00 a barrel. The eroding crude oil market, which is arguably theleader of the raw commodity sector, is also a negative element for the metals.

Technically,gold prices are still in a two-month-old downtrend on the daily bar chart. Thegold bears have the slight overall near-term technical advantage. Gold bulls'next upside near-term price breakout objective is to produce a close abovesolid technical resistance at the May high of $1,332.40. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at the May low of $1,286.80. First resistance is seen at today’s highof $1,302.30 and then at last week’s high of $1,312.60. First support is seenat last week’s low of $1,293.10 and then at $1,286.80. Wyckoff's Market Rating:4.5

Thesilver bears have the slight overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the May low of$16.07. First resistance is seen at today’s high of $16.56 and then at $16.74.Next support is seen at last week’s low of $16.31 and then at $16.19. Wyckoff'sMarket Rating: 4.5.

JulyN.Y. copper closed up 335 points at 313.20 cents today. Prices closed nearerthe session high today. The copper bulls have regained the slight overallnear-term technical advantage. Copper bulls' next upside price objective ispushing and closing prices above solid technical resistance at the April highof 321.80 cents. The next downside price objective for the bears is closingprices below solid technical support at the March low of 295.85 cents. Firstresistance is seen at today’s high of 314.05 cents and then at the May high of314.85 cents. First support is seen at 310.00 cents and then at 307.50 cents.Wyckoff's Market Rating: 5.5.

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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