Gold At 6-Week High On Some Safe-Haven Demand, Bullish Charts

(Kitco News) - Gold prices aremoderately up and have hit a six-week high in early U.S. trading Monday. Somenew geopolitical developments in the Middle East and an increasingly bullishnear-term technical posture are prompting more trader and investor buyinginterest in the yellow metal. Gold prices are now within striking distance ofthe key $1,300.00 mark. August Comex gold was last up $5.40 an ounce at $1,285.50.JulyComex silver was last up $0.06 at $17.585 an ounce.

There are somenew geopolitical tensions in the Middle East that are prompting just a bit ofrisk aversion that is supporting the safe-haven gold market. Saudi Arabia and afew other Middle East nations have cut ties with Qatar after accusing thatsmall country of promoting terrorism.

Another terrorattack that killed seven people in London over the weekend had little impact onthe world markets. Unfortunately, these acts have become a fact of life inrecent years and markets tend to quickly look past them.

Nymex crude oilfutures prices are slightly lower in early U.S. trading. The oil market bearshave the firm overall near-term technical advantage. The other "outside market"on Monday morning finds the U.S. dollar index firmer on a short-covering bounceafter hitting a six-month low late last week. The greenback bears are also infirm near-term technical control as dollar index prices are in a three-month-olddowntrend.

Traders andinvestors are starting to look over the horizon, as key marketplace developmentsin the coming days include general elections in the U.K. later this week andthe FOMC meeting next week.

U.S. economicdata due for release Monday includes revised productivity and costs, the U.S.services PMI, manufacturers' shipments and inventories, the employment trendsindex, the ISM non-manufacturing survey, and the global services PMI.

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

Technically, Augustgold futures bulls have the firm overall near-term technical advantage as prices are in an uptrend onthe daily bar chart. Bulls' next upside near-term price breakout objective isto produce a close above solid technical resistance at $1,300.00. Bears' nextnear-term downside price breakout objective is closing prices below solidtechnical support at the May low of $1,217.80. First resistance is seen at $1,290.00and then at $1,300.00. First support is seen at $1,280.00 and then at $1,275.00.Wyckoff'sMarket Rating: 6.5

Julysilver priceshit a five-week high overnight. Bulls have gained the slight overall near-termtechnical advantage. The nextupside price breakout objective is closing futures prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at $16.75. First resistance isseen at $17.75 and then at $18.00. Next support is seen at $17.465 and then at $17.25.Wyckoff'sMarket 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 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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