Gold Solidly Up, Hits 7-Week High, Flirts With $1,300
(Kitco News) - Gold pricesended the U.S. day session solidly higher and hit a seven-week high Tuesday.Prices are within easy striking distance of the key $1,300.00 mark. Bullishcharts, a weak U.S. dollar and safe-haven demand are all working in favor ofthe gold market bulls, at present. Meantime, silver prices notched a five-weekhigh and are in a near-term uptrend. August Comex gold was last up $14.80 anounce at $1,297.40. JulyComex silver was last up $0.114 at $17.695 an ounce.
There is somerisk aversion in the marketplace this week, ahead of potentially markets-movinghappenings later this week. Such is benefitting safe-haven gold, as well asU.S. Treasuries and the Japanese yen. On Thursday there are general electionsin the U.K., a European Central Bank meeting, and former FBI director JamesComey testifies to the U.S. Congress. Next week, the Federal Reserve's FOMCmeets, at which time it is expected the Fed will slightly raise U.S. interestrates.
A depreciatingU.S. dollar on the world foreign exchange markets is also propelling theprecious metals market bulls. The U.S. dollar index was lower and hit a six-monthlow today. The greenback bears are in firm near-term technical control asdollar index prices are in a three-month-old downtrend.
The other"outside market" saw Nymex crude oil futures prices higher Tuesday, on shortcovering. The oil market bears still have the firm overall near-term technicaladvantage and prices are now well below $50.00 a barrel.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically, Augustgold futures prices closed nearer thesession high today. The gold bulls have the firm overall near-term technicaladvantage. Prices are in a steep four-week-old uptrend on the daily bar chart.Gold bulls' next upside near-term price breakout objective is to produce aclose above solid technical resistance at $1,300.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,260.00. First resistance is seen at $1,300.00 and then at$1,310.00. First support is seen at $1,290.00 and then at this week's low of1,280.20. Wyckoff's Market Rating: 7.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
July silver futures prices closed nearer the session high. Thesilver market bulls have the overall near-term technical advantage. Prices arein a four-week-old uptrend on the daily bar chart. Silver bulls' next upsideprice breakout objective is closing prices above solid technical resistance at$18.00 an ounce. The next downside price breakout objective for the bears isclosing prices below solid support at $16.75. First resistance is seen attoday's high of $17.745 and then at $18.00. Next support is seen at this week'slow of $17.495 and then at $17.25. Wyckoff's Market Rating: 6.0.
July N.Y. copper closed down 95 points at 254.80 cents today.Prices closed nearer the session high today. The copper bulls and bears are ona level overall near-term technical playing field. Copper bulls' next upsideprice objective is pushing and closing prices above solid technical resistanceat 270.00 cents. The next downside price objective for the bears is closingprices below solid technical support at the May low of 247.25 cents. Firstresistance is seen at this week's high of 257.55 cents and then at 259.60cents. First support is seen at today's low of 251.55 cents and then at 250.00cents. Wyckoff's Market Rating: 5.0.
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jwyckoff@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 precious metal products, 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.  |