Gold Holds Near Steady Despite Bearish Outside Elements

(Kitco News) - Gold prices ended the U.S. day session near steady Monday. Silver futures finished higher and closed at a new two-year high close today. The precious metals bulls should be pleased with their markets’ performance, as risk appetite in the world marketplace is on the upswing early this week. Global stock markets were higher Monday, led by Japan’s Nikkei, which rallied by 4% for the biggest daily gain since March. U.S. stock indexes were solidly higher in afternoon trading and were poised to close into record high territory for the S&P 500. August Comex gold was last down $2.20 an ounce at $1,356.10. September Comex silver was last up $0.221 at $20.32 an ounce.

The key “outside markets” were also bearish for the precious metals today, as the U.S. dollar index was higher and crude oil prices were lower.

World stock markets were cheered by last Friday’s U.S. jobs report that showed a much-stronger-than-expected non-farm jobs growth number of 287,000 in June, following a weak reading of up just 38,000 in May.

However, still troubling to many veteran market watchers is the fact that many government bond markets continue to see their yields drop, with many at or near record lows. The safe-haven demand for U.S. Treasuries, the U.S. dollar and gold recently suggests many feel there are rough waters that lie ahead on the world economic, political and financial scene.

On Thursday the Bank of England meets to discuss U.K. monetary policy. Some believe the BOE will move to lower interest rates at the meeting, following the recent Brexit vote.

U.S. economic data due for release Monday was light and included the employment trends index.

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Technically, August gold futures prices closed nearer the session low. The gold bulls still have the solid overall near-term technical advantage. Prices are in a six-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 $1,320.00. First resistance is seen at $1,362.60 and then at $1,370.00. First support is seen at today’s low of $1,351.80 and then at $1,340.00. Wyckoff’s Market Rating: 7.5

September silver futures prices closed near mid-range and closed at a two-year high close today. 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 the July high of $21.22 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.00. First resistance is seen at today’s high of $20.76 and then at $21.000. Next support is seen at today’s low of $20.17 and then at $20.00. Wyckoff's Market Rating: 8.0.

September N.Y. copper closed up 270 points at 214.60 cents today. Prices closed near mid-range. The copper bulls and bears are 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 216.75 cents and then at 219.00 cents. First support is seen at last week’s low of 211.65 cents and then at 210.00 cents. Wyckoff's Market Rating: 5.0.

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