Gold Sees Corrective, Profit-Taking Pullback From Recent Gains

(Kitco News) - Gold prices ended the U.S. day session modestly lower on some mild profit taking after hitting a 27-month high Wednesday. World stock and financial markets stabilized Thursday, following anxiety that was present earlier this week. Silver prices also saw a corrective pullback Thursday, after hitting a two-year high on Tuesday. August Comex gold was last down $4.40 an ounce at $1,362.80. September Comex silver was last down $0.428 at $19.775 an ounce.

The ADP national employment report for June was released Thursday and showed a gain of 172,000, which was higher than expected. Traders and investors are now anxiously awaiting Friday morning’s U.S. employment report for June from the Labor Department. The key non-farm payrolls number is expected to be up around 150,000, following May’s very weak non-farm jobs rise of just 38,000. However, Thursday’s ADP jobs number and a strong U.S. ISM non-manufacturing report on Wednesday are leading to ideas Friday’s June non-farm jobs number will show a good rebound from May’s number.

Look for more active trading Friday morning, in the immediate aftermath of the jobs data.

World stock markets were assuaged Thursday, following a dovishly perceived FOMC minutes report released Wednesday afternoon. Many market watchers doubt the Federal Reserve will be able to raise interest rates this year.

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Technically, August gold futures prices closed near mid-range. The gold bulls still have the solid overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,400.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of $1,338.50. First resistance is seen at this week’s high of $1,377.50 and then at $1,385.00. First support is seen at today’s low of $1,352.00 and then at $1,350.00. Wyckoff’s Market Rating: 8.0

September silver futures closed nearer the session low on profit taking after prices closed at a two-year high close Wednesday. The silver market bulls still have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $21.22 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.50. First resistance is seen at $20.00 and then at today’s high of $20.335. Next support is seen at today’s low of $19.525 and then at $19.25. Wyckoff's Market Rating: 7.5.

September N.Y. copper closed down 305 points at 212.30 cents today. Prices closed nearer the session low on more profit taking. The copper bulls and bears are now back on a level overall near-term technical playing field. 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 201.80 cents. First resistance is seen at today’s high of 216.25 cents and then at 219.00 cents. First support is seen at today’s low of 211.70 cents and then at 210.00 cents. Wyckoff's Market Rating: 5.0.

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