Gold Lower On Follow-Through Selling and Profit Taking

(Kitco News) - Gold prices ended the U.S. day session modestly lower Tuesday, on some follow-through selling from the shorter-term futures traders, after the solid losses seen Monday. Some profit taking was also featured. The recent rebound in the U.S. dollar index has also been a bearish “outside market” force working against the precious metals bulls the past few sessions. June Comex gold futures were last down $4.80 an ounce at $1,261.90. July Comex silver was last down $0.009 at $17.08 an ounce.

Rebounding U.S. and world stock markets so far this week are also pulling money away from the safe-haven gold market.

The other key outside market Tuesday saw Nymex crude oil prices higher and trading above $44.00 a barrel. Crude remains in a near-term price uptrend on the daily chart, which is a bullish element for the precious metals and the entire raw commodity sector.

Technically, June gold futures prices closed nearer the session low today. The gold bulls still have the overall near-term technical advantage, but are fading again. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the May of $1,306.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,250.00. First resistance is seen at today’s high of $1,269.50 and then at 1,275.00. First support is seen at today’s low of $1,258.30 and then at $1,250.00. Wyckoff’s Market Rating: 6.5

July silver futures prices closed near mid-range today and hit another two-week low. The silver market bulls still have the overall near-term technical advantage but are fading. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the May high of $18.06 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at $17.25 and then at this week’s high of $17.505. Next support is seen at today’s low of $16.925 and then at $16.80. Wyckoff's Market Rating: 6.5.

July N.Y. copper closed down 120 points at 209.30 cents today. Prices closed near the session low and hit another four-week low today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the April low of 207.90 cents. First resistance is seen at today’s high of 212.00 cents and then at 213.70 cents. First support is seen at 207.90 cents and then at 205.00 cents. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com