(Kitco News)- Gold and silver prices are modestly higher in early-afternoon U.S. trading Monday.Mild support comes from some bargain hunting in the cash market and shortcovering in the futures market, following recent losses that drove the twoprecious metals prices to multi-month lows last week. The metals were well downfrom their daily highs as the U.S. dollar index recovered early losses to tradehigher on the day today. August gold futures were last up $3.60 an ounce at$1,259.40. July Comex silver was last up $0.071 at $16.14 an ounce.
Worldstock markets were mostly higher today, as there continues to be little riskaversion in the marketplace at present, despite a U.S.-China trade war that isescalating and reports that the U.S.-North Korea relationship is breaking down.The gold and silver markets would benefit from a firm dose of geopoliticaluncertainty.
Therewere no fresh, major markets-moving news developments over the weekend. KeyU.S. economic data released this week includes the producer price index onWednesday and the consumer price index on Thursday.
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Theother key “outside market” today finds Nymex crude oil prices slightly lowerand trading around $73.50 a barrel. The rallying oil market is a bullishelement for the precious metals markets.
Technically,the gold bears still have the firm overall near-term technical advantage. 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 $1,275.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,230.00. First resistance is seen at today’s high of $1,266.90 and then at$1,270.00. First support is seen at today’s low of $1,255.70 and then at$1,250.00. Wyckoff's Market Rating: 3.0.
Thesilver bears still have the 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 $15.55. Firstresistance is seen at today’s high of $16.25 and then at $16.40. Next supportis seen at $16.00 and then at last week’s low of $15.80 and then at $15.75.Wyckoff's Market Rating: 2.5.
SeptemberN.Y. copper closed up 255 points at 284.95 cents today. Prices closed nearmid-range and saw short covering after hitting a 12-month low last week. Thecopper bears still have the solid overall near-term technical advantage. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at 300.00 cents. The next downside price objective for thebears is closing prices below solid technical support at 270.00 cents. Firstresistance is seen at today’s high of 287.70 cents and then at 290.00 cents. Firstsupport is seen at today’s low of 281.50 cents and then at last week’s low of278.25 cents. Wyckoff's Market Rating: 1.5.
By Jim WyckoffFor Kitco News
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