Gold Slumps To 3-Week Low As U.S. Equities Continue To Climb

(Kitco News) - Gold prices were ending the U.S. day session lower and scored a three-week low Monday. There were no major geopolitical developments over the weekend to rattle the markets and the U.S. stock indexes are at or near record highs with no signs of easing. Those are bearish elements for safe-haven gold. June Comex gold was last down $11.20 an ounce at $1,257.10. July Comex silver was last down $0.331 at $16.86 an ounce.

While traders and investors worldwide remain generally upbeat at present, as evidenced by lofty stock market prices, there are still geopolitical fires smoldering, including U.S. relations with North Korea and Russia. These issues are not going away anytime soon.

The markets’ data-point highlights of the week are the Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement, and Friday morning’s U.S. jobs report from the Labor Department. No change in U.S. monetary policy is expected at this week’s FOMC meeting. However, as usual, the wording of the FOMC statement released early Wednesday afternoon will be parsed for any clues on future U.S. monetary policy moves.

The key outside markets on Monday saw the U.S. dollar index trading near steady. The greenback bears still have the overall near-term technical advantage. Meantime, Nymex crude oil prices were lower and bears also have the near-term technical advantage.

Technically, June gold futures prices closed nearer the session low today, hit a three-week low and scored a bearish “outside day” down on the daily bar chart. The gold bulls and bears are back on a level overall near-term technical playing field, but the bears have momentum on their side. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,241.50. First resistance is seen at $1,260.00 and then at today’s high of $1,272.40. First support is seen at today’s low of $1,254.90 and then at 1,250.00. Wyckoff's Market Rating: 5.0

July silver futures prices closed nearer the session low and hit a six-week low. The silver market bears have the firm overall near-term technical advantage amid the recent downdraft in prices. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $17.29 and then at $17.445. Next support is seen at the March low of $16.89 and then at $16.75. Wyckoff's Market Rating: 3.0.

May N.Y. copper closed up 535 points at 266.05 cents today. Prices closed nearer the session high on short covering and bargain hunting. The copper bulls now have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the April low of 250.85 cents. First resistance is seen at today’s high of 269.45 cents and then at the March high of 273.10 cents. First support is seen at 262.50 cents and then at 260.00 cents. Wyckoff's Market Rating: 6.0.

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