Gold Modestly Up On Follow-Through Strength From Friday’s Solid Gains

(Kitco News) - Gold prices ended the U.S. day session with modest gains Monday, following the strong gains posted Friday in the wake of a very weak U.S. jobs report. The gold bulls have regained the near-term technical advantage on the charts. August Comex gold was last up $4.20 an ounce at $1,247.20. July Comex silver was last up $0.065 at $16.43 an ounce.

A highly anticipated speech today by Fed Chair Janet Yellen was not a big markets-mover. She offered only a bit of new insight into upcoming Fed monetary policy decisions following Friday’s very downbeat jobs report for May that showed a paltry 38,000 rise in the key non-farm payrolls number. Yellen noted the recent U.S. jobs-growth slowdown. She said the Fed would still like to raise interest rates but took out any mention of specific timing of such. Gold prices pushed just modestly higher during Yellen’s speech, as the U.S. dollar index moved to its daily low during that timeframe.

World stock markets were narrowly mixed overnight in mostly subdued trading. U.S. stock indexes were firmer in afternoon New York dealings. Recent rallies in world stock markets have been a detriment to safe-haven gold.

There were no major U.S. economic reports released Monday.

Technically, August gold futures prices closed near mid-range today, on follow-through buying interest from Friday’s strong gains that produced a technically bullish weekly high close. The gold bulls have regained the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at today’s high of $1,251.30 and then at $1,260.00. First support is seen at today’s low of $1,242.10 and then at $1,235.00. Wyckoff’s Market Rating: 6.0

July silver futures prices closed nearer the session low after good gains seen Friday that produced a bullish weekly high close. The silver market bulls and bears are back on a level overall near-term technical playing field. A four-week-old downtrend is still in place on the daily bar chart, however. 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 last week’s low of $15.83. First resistance is seen at $16.585 and then at $16.75. Next support is seen at $16.25 and then at $16.00. Wyckoff's Market Rating: 5.0.

July N.Y. copper closed down 35 points at 211.65 cents today. Prices closed nearer the session low today after hitting a four-week high early on 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 May low of 203.80 cents. First resistance is seen at today’s high of 214.50 cents and then at 217.50 cents. First support is seen at 210.00 cents and then at 208.00 cents. Wyckoff's Market Rating: 3.0.

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