(Kitco News) - Gold and silver prices were moderately higher in early-afternoon U.S. trading Tuesday,on some short covering in the futures markets and perceived bargain-buying inthe cash markets. Gold hit a 12-month low overnight and silver scored a seven-monthlow on Monday. The U.S. dollar index was also lower today, which favored theprecious metals market bulls. Augustgold futures were last up $13.10 an ounceat $1,254.80. July Comex silver was last up $0.205 at $16.035 an ounce.
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Reportsovernight said Monday’s trading in gold exchange traded funds saw the largestoutflow of money from those funds since late March. Gold and silver bullsremain stymied by their metals’ recent inability to rally in the face of thethreat of a global trade war and some fresh instability in the European Union.
Ifthe gold and silver markets can add to their Tuesday gains the rest of thisweek and close near their weekly highs on Friday, such would be a bullish cluethat these metals have put in near-term market bottoms.
TheU.S. Independence Day holiday is on Wednesday and many markets close earlytoday. However, some important U.S. economic data is out later this week,including the Fed’s FOMC minutes on Thursday and the jobs report from the LaborDepartment on Friday.
Thekey “outside markets” today find the U.S. dollar index lower but still not farbelow the 12-month high hit last week. Meantime, Nymex crude oil prices arehigher, hit a 3.5-year high and traded above $75.00 a barrel for a short time,before backing off on some profit taking.
Technically,gold prices also scored a bullish “outside day” up on the daily bar chart. Thegold bears still have the firm overall near-term technical advantage. A2.5-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 $1,275.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,230.00. First resistance is seen at $1,260.00 and then at $1,268.00. Firstsupport is seen at $1,250.00 and then at $1,240.00. Wyckoff's Market Rating:3.0
Thesilver bears have the solid overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $16.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $15.50. Firstresistance is seen at Monday’s high of $16.18 and then at $16.25. Next supportis seen at this week’s low of $15.80 and then at $15.75. Wyckoff's MarketRating: 2.0.
SeptemberN.Y. copper closed down 285 points at 291.55 cents today. Prices closed nearerthe session low and hit another 11-month low today. The copper bears have thesolid overall near-term technical advantage. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at305.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at 275.00 cents. First resistance is seen at295.00 cents and then at this week’s high of 297.30 cents. First support isseen at today’s low of 290.80 cents and then at 287.50 cents. Wyckoff's MarketRating: 1.5.
By Jim WyckoffFor Kitco News
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