Gold, Silver Prices Drift Lower In Lackluster Summertime Trading

(Kitco News) - Gold and silver prices aremoderately lower in early-afternoon U.S. trading Monday. Both metals are notfar above last week’s 12-month lows. The key “outside markets” were bearish forthe precious today as the U.S. dollar index was firmer and crude oil priceswere weaker. Also, the technical postures for gold and silver markets remainfully bearish on a near-term basis. Augustgold futures were last down $5.20 anounce at $1,225.90. September Comex silver was down $0.134 at $15.415 an ounce.

Worldstock markets were mixed to mostly lower today. U.S. stock indexes wereslightly higher in afternoon dealings. The world stock markets showed just amildly bearish reaction to President Trump’s tweet late Sunday warning Iran notto threaten the U.S. or that country would suffer grave consequences.Safe-haven gold and silver markets saw no significant reaction to the tweet.

U.S.economic data due for release Monday included the Chicago Fed national activityindex and existing home sales. Neither report moved the markets, amidlackluster summertime trading, when many traders are thinking more about theirupcoming family vacations than they are the markets.

(NOTE:Follow me on Twitter: @jimwyckoff)

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'next near-term downside price breakout objective is pushing prices below solidtechnical support at $1,200.00. First resistance is seen at today’s high of$1,235.20 and then at $1,240.00. First support is seen at today’s low of$1,222.20 and then at last week’s low of $1,210.70. Wyckoff's Market Rating:1.5

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 $15.58 and then at last week’s high of $15.90. Nextsupport is seen at today’s low of $15.35 and then at last week’s low of$15.185. Wyckoff's Market Rating: 1.5.

SeptemberN.Y. copper closed down 100 points at 274.60 cents today. Prices closed nearerthe session low today. The copper bears have the solid overall near-termtechnical advantage. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at 290.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at 260.00 cents. First resistance is seen at today’s high of 277.65cents and then at 280.00 cents. First support is seen at today’s low of at273.40 cents and then at 270.00 cents. Wyckoff's Market Rating: 1.5.

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.

Major metals not gaining much on China stimulus announcements

Spectre of stagflation looms over base metals

TSXV large gold gains overall, but a mixed story underneath

Large cap gold underperforms juniors

Swings in geopolitical risk premium a major recent gold driver