Gold Price Weaker As International Waters Calm - For Now

(Kitco News) - There was much less risk aversion in the world marketplace Tuesday, following two sessions of very rough trading waters. Safe haven gold prices saw some selling pressure on profit taking from the shorter-term futures traders, following the recent strong gains that pushed prices to a 27-month last Friday. Still, the gold market bulls are in firm near-term technical command. August Comex gold was last down $7.00 an ounce at $1,317.80. July Comex silver was last up $0.091 at $17.835 an ounce.

The VIX (volatility index) that is one measure of anxiety in the marketplace for stocks calmed to pre-Brexit readings Tuesday.

Most world stock markets rebounded Tuesday and U.S. stock indexes were solidly higher in afternoon New York trading. Other safe-haven assets--U.S. Treasuries and the U.S. dollar index also saw some selling pressure following their recent solid gains. The British pound and Euro currency have stabilized following their pounding taken after last week’s Brexit vote.

Many market watchers are still wondering if there is more Brexit-related selling pressure soon to come. Today’s market action could be just a pause before more Brexit-related market turmoil resumes. Ratings agencies, including Standard & Poors and Fitch, on Monday lowered their credit ratings for the United Kingdom.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Technically, August gold futures prices closed near mid-range. The gold bulls still have the solid overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,362.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,252.80. First resistance is seen at today’s high of $1,329.50 and then at this week’s high of $1,340.00. First support is seen at today’s low of $1,308.20 and then at $1,300.00. Wyckoff’s Market Rating: 7.5

July silver futures prices closed nearer the session high. The silver market bulls have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at this week’s high of $17.94 and then at the May high of $18.08. Next support is seen at today’s low of $17.55 and then at $17.25. Wyckoff's Market Rating: 7.5.

July N.Y. copper closed up 490 points at 217.10 cents today. Prices closed nearer the session high and hit a seven-week high again today. The copper bulls have gained the slight overall near-term technical advantage. A bullish “rounding-bottom” reversal pattern has formed on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 201.30 cents. First resistance is seen at today’s high of 218.35 cents and then at 220.00 cents. First support is seen at 215.00 cents and then at today’s low of 211.85 cents. Wyckoff's Market Rating: 5.5.

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