Gold, Silver Prices Steady-Mixed in Quieter Summertime Trading

(Kitco News) - Gold and silver prices arenarrowly mixed in subdued early-afternoon U.S. trading Tuesday. Some mild shortcovering by the shorter-term futures traders is featured in both markets today,to limit the downside. Still, the lack of major market news events in the worldat present is allowing the chart-based traders to dominate-and the technicalsfor both gold and silver remain firmly bearish. August gold futures were last down$0.50 an ounce at $1,225.10. September Comex silver was up $0.08 at $15.505 anounce.

Worldstock markets were mostly higher overnight. U.S. stock indexes are higher todayand set contract or multi-month highs. Money continues to flow into the U.S.stock market amid an atmosphere of low risk aversion in the marketplace atpresent. That’s also bearish for safe-haven gold and silver markets.

Featuredin the marketplace early this week is rising world government bond yields, onideas the major central banks of the world will embark upon rolling back theirheretofore easy monetary policies. Reports say the Bank of Japan is on theverge of scaling back its very accommodative policies.

Thekey “outside markets” today find Nymex crude oil prices higher and trading justbelow $69.00 a barrel. Meantime, the U.S. dollar index is slightly weakertoday.

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.

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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. Athree-month-old downtrend is in place on the daily bar chart. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at $1,250.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,200.00. First resistance is seen at Monday’s high of $1,235.20 and then at$1,240.00. First support is seen at today’s low of $1,218.10 and then at lastweek’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 $15.63 and then at last week’s high of $15.90. Nextsupport is seen at today’s low of $15.34 and then at last week’s low of$15.185. Wyckoff's Market Rating: 1.5.

SeptemberN.Y. copper closed up 635 points at 281.05 cents today. Prices closed nearerthe session high today and scored a bullish “outside day” up on the daily barchart. Heavy short covering was featured. The copper bears still have the firmoverall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at300.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at the July low of 267.35 cents. First resistanceis seen at today’s high of 283.50 cents and then at 285.00 cents. First supportis seen at 277.50 cents and 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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