Gold, Silver Slightly Up Amid “Dog Days” of Summer

(Kitco News) - Gold and silver prices ended a quiet U.S. day session slightly higher Tuesday. Some mild short covering in the futures markets and bargain hunting in the cash markets were featured, following recent selling pressure. December Comex gold was last up $2.70 an ounce at $1,346.20. December Comex silver was last up $0.072 at $19.07 an ounce.

The “dog days” of summer are here. Many traders in the Western Hemisphere are on vacation. Markets could be quieter until after the U.S. Labor Day holiday in early September.

The highlight of this week will be the Federal Reserve’s annual symposium held in Jackson Hole, Wyoming. Fed Chair Janet Yellen speaks at the event on Friday. Recent comments from Federal Reserve officials have been mixed, but the majority of their recent rhetoric has leaned toward the hawkish side of U.S. monetary policy. There are now increasing ideas in the marketplace that the Fed will raise interest rates yet this year.

World stock markets have been in a general rally mode in recent weeks, with many indexes hitting record or multi-year highs, or close to them, which is a negative for the competing asset, safe-haven gold.

The key “outside markets” were in a bullish mode for the precious metals today. Nymex crude oil futures prices were higher, while the U.S. dollar index was weaker.

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Technically, December gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage, but a seven-week-old downtrend line is in place on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,374.20. 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 $1,350.00 and then at $1,360.00. First support is seen at the August low of $1,335.30 and then at $1,325.00. Wyckoff’s Market Rating: 6.5

December silver futures prices closed nearer the session low today. The key “outside markets” were bullish for silver today as the U.S. dollar index was lower and crude oil prices were higher. The silver market bulls and bears are on a level overall near-term technical playing field. Prices are in a three-week-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $19.00 and then at this week’s high of $19.385. Next support is seen at today’s low of $18.975 and then at this week’s low of $18.55. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed down 250 points at 212.70 cents today. Prices closed nearer the session low and hit a seven-week low today. The copper bears have the firm overall near-term technical advantage. Prices are in a six-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 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 203.15 cents. First resistance is seen at today’s high of 215.95 cents and then at this week’s high of 217.45 cents. First support is seen at today’s low of 212.10 cents and then at 210.00 cents. Wyckoff's Market Rating: 3.0.

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