Gold Ends Near Steady Amid Chart Consolidation; Bulls Still Have Technical Edge

(Kitco News) - Gold prices ended the U.S. say session near unchanged levels Tuesday, amid mild profit-taking pressure and some normal backing and filling on the charts following recent good gains. The gold market bulls still possess the overall near-term technical advantage. That means the path of least resistance for prices in the near term will remain sideways to higher. August Comex gold was last up $0.10 an ounce at $1,247.60. July Comex silver was last down $0.017 at $16.43 an ounce.

World stock markets were mostly higher Tuesday, boosted in part by the recent rally in crude oil prices that sees Nymex futures presently trading just above $50.00 a barrel. U.S. stock indexes were higher in afternoon action Tuesday, as prices are at or near highs for this year and also near record highs. A speech from Fed Chair Janet Yellen on Monday did not cause any fresh alarm about U.S. economic growth prospects, and that also reassured stock market investors. The recent rallies in world stock markets have been a bearish element for safe-haven gold.

The key “outside markets” on Tuesday find the U.S. dollar index trading slightly lower as the greenback bears have gained downside technical momentum recently. Nymex crude oil futures prices are firmer and remain in a near-term uptrend on the daily bar chart.

Technically, August gold futures prices closed nearer the session high today, on some chart consolidation following recent strong gains. The gold bulls have 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 this week’s high of $1,251.30 and then at $1,260.00. First support is seen at today’s low of $1,236.90 and then at $1,230.00. Wyckoff’s Market Rating: 6.0

July silver futures prices closed nearer the session high. The silver market bulls and bears are on a level overall near-term technical playing field. 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 this week’s high of $16.545 and then at $16.75. Next support is seen at today’s low of $16.245 and then at $16.00. Wyckoff's Market Rating: 5.0.

July N.Y. copper closed down 665 points at 205.10 cents today. Prices closed nearer the session low today and closed at a four-month low close. The copper bears have the firm overall near-term technical advantage and gained more power today. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 215.00 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 208.00 cents and then at 210.00 cents. First support is seen at 203.80 cents and then at 202.00 cents. Wyckoff's Market Rating: 2.0.

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