(Kitco News) - Gold ended the U.S. day session with modest losses in a choppy, two-sided trading affair Wednesday. Some short covering in the futures market and some bargain hunting in the cash market lifted prices early on. However, upbeat U.S. economic data released later in the morning helped to drag prices down from their daily highs. August Comex gold was last down $2.50 an ounce at $1,214.90. July Comex silver was last down $0.044 at $15.945 an ounce.
U.S. manufacturing sector data issued today was a bit better than expected. The data falls into the camp of the U.S. monetary policy hawks, who would like to see the Federal Reserve raise interest rates sooner rather than later. A growing number of market watchers expect the Fed to raise interest rates in June or July.
Selling pressure in gold Wednesday was mitigated by losses in the U.S. dollar index. The other key outside market saw Nymex crude oil prices trading slightly lower in afternoon dealings.
In overnight news, China’s official purchasing managers’ index (PMI) came in at 50.1 in May. The Caixin manufacturing PMI came in at 49.2 versus 49.4 in April. A reading above 50.0 suggests expansion in the sector. The news was deemed slightly downbeat and Asian stock markets saw some selling pressure on the data.
The Paris-based OECD think tank released a report Wednesday warning that the world’s major economies face serious recessions unless governments implement economic stimulus measures. “The need is urgent,” said the OECD.
More important market events occur Thursday and Friday of this week. The European Central Bank monetary policy meets on Thursday and the U.S. jobs report is on Friday. Also, an OPEC oil cartel meeting begins Thursday.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically, August gold futures prices closed near mid-range today. The gold bulls and bears are 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 today’s high of $1,222.90 and then at $1,230.00. First support is seen at $1,207.70 and then at $1,200.00. Wyckoff’s Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
July silver futures prices closed near mid-range and hit a seven-week low today. The silver market bears 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 this week’s high of $16.245 and then at $16.50. Next support is seen at today’s low of $15.83 and then at $15.50. Wyckoff's Market Rating: 5.0.
July N.Y. copper closed down 235 points at 207.15 cents today. Prices closed near mid-range 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 208.95 cents and then at this week’s high of 211.60 cents. First support is seen at today’s low of 205.15 cents and then at the May low of 203.80 cents. Wyckoff's Market Rating: 2.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
