Gold Slightly Down As Dog Days Of Summer Setting In

(Kitco News) - Gold prices ended the U.S. day session with modest losses in a two-sided and lackluster trading session Thursday. A rebound in the U.S. dollar index was a bearish outside market force working against the precious metals on this day. Traders, investors and the markets have slowed down as mid-August approaches, which is vacation time for many westerners. Trading activity in many markets is likely to remain quiet until after the U.S. Labor Day holiday in early September. December Comex gold was last down $1.30 an ounce at $1,350.60. September Comex silver was last down $0.11 at $20.06 an ounce.

World stock markets were mixed in uneventful trading overnight. The U.S. stock indexes were higher and set new highs in the New York day session. The “risk-on” attitudes in the marketplace the past few weeks have been another bearish element for safe-haven gold. Yet, gold has held its ground pretty well, and that should be encouraging to the bulls.

The key “outside markets” Thursday saw the U.S. dollar index trade firmer on a corrective bounce from strong selling pressure seen the past two days. Nymex crude oil prices were sharply higher.

The World Gold Council said Thursday that worldwide gold demand rose by 15% in the second quarter, year-on-year.

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Technically, December gold futures prices closed nearer the session low. The gold bulls still have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the July high of $1,384.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the July low of $1,318.50. First resistance is seen at today’s high of $1,359.40 and then at this week’s high of $1,363.60. First support is seen at today’s low of $1,345.80 and then at this week’s low of $1,335.30. Wyckoff’s Market Rating: 7.0

September silver futures prices closed nearer the session low. 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 the July high of $21.225 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 $20.34 and then at this week’s high of $20.515. Next support is seen at today’s low of $19.905 and then at this week’s low of $19.515. Wyckoff's Market Rating: 7.0.

September N.Y. copper closed up 190 points at 219.00 cents today. Prices closed nearer the session high on more short covering. The copper bears still have the overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the July high of 227.75 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the July low of 211.65 cents. First resistance is seen at this week’s high of 220.50 cents and then at 222.50 cents. First support is seen at today’s low of 216.90 cents and then at this week’s low of 214.00 cents. Wyckoff's Market Rating: 4.0.

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