Gold Ends Near Steady After Hitting 3.5-Mo. Low Overnight

(Kitco News) - Gold prices ended the U.S. day session near unchanged Tuesday, after hitting a 3.5-month low overnight. Prices are in a steep four-week-old downtrend on the daily bar chart as there is scant, fresh bullish fundamental news to be found. This is allowing the chart-based traders to dominate as the near-term technical postures for gold and silver have deteriorated. August Comex gold was last up $0.50 an ounce at $1,217.20. July Comex silver was last down $0.259 at $16.01 an ounce.

Gold prices did move up from the daily lows in late-morning trading, on some bargain hunting in the cash market and some short covering in the futures market.

World stock markets were mostly firmer overnight, and are ending what has been a good month of May for the world stock market bulls. The mostly “risk on” trading appetite during the month of May was a significant negative element for safe-haven gold. U.S. stock index futures were weaker in early-afternoon trading Tuesday, following a three-day holiday weekend.

Several U.S. economic reports out Tuesday did little to move the gold and silver markets.

As this week progresses, more important market events will unfold, including the European Central Bank monetary policy meeting on Thursday and the U.S. jobs report on Friday. The OPEC oil cartel also meets Thursday.

Technically, August gold futures prices closed nearer the session high after hitting a 3.5-month low early on today. The gold bulls and bears are now on a level overall near-term technical playing field as bulls have faded badly recently. Prices are in a four-week-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at Friday’s high of $1,225.80 and then at $1,237.20. First support is seen at $1,207.70 and then at $1,200.00. Wyckoff’s Market Rating: 5.0

July silver futures prices closed nearer the session low, hit a seven-week low and closed at a bearish monthly low close today. The silver market bulls bears now have the slight overall near-term technical advantage. A four-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.50. First resistance is seen at today’s high of $16.245 and then at $16.50. Next support is seen at today’s low of $15.915 and then at $15.75. Wyckoff's Market Rating: 5.0.

July N.Y. copper closed down 190 points at 209.50 cents today. Prices closed nearer the session 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 200.00 cents. First resistance is seen at today’s high of 211.60 cents and then at last week’s high of 213.00 cents. First support is seen at 208.00 cents and then at 206.50 cents. Wyckoff's Market Rating: 3.0.

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