Gold, Silver Down On Lack Of Bullish News, Bearish Charts

(Kitco News) - Gold pricesaremoderately lower and silver prices are slightly down in early-afternoon U.S.trading Thursday. Bearish near-term technical postures for gold and silvercombined with no major fundamental news to drive the markets at present areallowing both metals prices to drift sideways to lower. Augustgold futures were last down $5.40 an ounce at $1,226.40. September Comex silver was lastdown $0.104 at $15.485 an ounce.

Thekey “outside markets” today find Nymex crude oil prices higher and trading justbelow $70.00 a barrel. The U.S. dollar index is higher today, which also addedsome selling pressure to the metals markets.

The big U.S. economic data point of the week is Friday’s first estimate ofgross domestic product (GDP). The number is expected to come in at up a strong4.4%. However, some analysts are even calling for a number of 5.0% or justabove. Friday could be the most active trading day of the week for manymarkets, including the precious metals.

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Technically,the gold bears have the solid overall near-term technical advantage. There areno strong, early clues to suggest a market bottom is close at hand. A three-month-old downtrend is in place onthe daily bar chart. Gold bulls' next upside near-term price breakout objectiveis to produce a close above solid technical resistance at $1,250.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,200.00. First resistance is seen at today’s high of$1,235.30 and then at $1,240.00. First support is seen at this week’s low of$1,218.10 and then at last week’s low of $1,210.70. Wyckoff's Market Rating:2.0

Thesilver bears have the solid overall near-term technical advantage. There are noearly clues to suggest a market bottom is close at hand. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $16.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at $15.00. First resistance isseen at today’s high of $15.70 and then at last week’s high of $15.90. Nextsupport is seen at this week’s low of $15.34 and then at last week’s low of$15.185. Wyckoff's Market Rating: 2.0.

SeptemberN.Y. copper closed down 15 points at 281.60 cents today. Prices closed nearerthe session low. The copper bears have the firm overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at 300.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat the July low of 267.35 cents. First resistance is seen at this week’s highof 283.70 cents and then at 285.00 cents. First support is seen at 277.50 centsand then at 275.00 cents. Wyckoff's Market Rating: 2.5.

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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