Gold Solidly Up, Hits 7-Week High, Flirts With $1,300

(Kitco News) - Gold prices ended the U.S. day session solidly higher and hit a seven-week high Tuesday. Prices are within easy striking distance of the key $1,300.00 mark. Bullish charts, a weak U.S. dollar and safe-haven demand are all working in favor of the gold market bulls, at present. Meantime, silver prices notched a five-week high and are in a near-term uptrend. August Comex gold was last up $14.80 an ounce at $1,297.40. July Comex silver was last up $0.114 at $17.695 an ounce.

There is some risk aversion in the marketplace this week, ahead of potentially markets-moving happenings later this week. Such is benefitting safe-haven gold, as well as U.S. Treasuries and the Japanese yen. On Thursday there are general elections in the U.K., a European Central Bank meeting, and former FBI director James Comey testifies to the U.S. Congress. Next week, the Federal Reserve’s FOMC meets, at which time it is expected the Fed will slightly raise U.S. interest rates.

A depreciating U.S. dollar on the world foreign exchange markets is also propelling the precious metals market bulls. The U.S. dollar index was lower and hit a six-month low today. The greenback bears are in firm near-term technical control as dollar index prices are in a three-month-old downtrend.

The other “outside market” saw Nymex crude oil futures prices higher Tuesday, on short covering. The oil market bears still have the firm overall near-term technical advantage and prices are now well below $50.00 a barrel.

Technically, August gold futures prices closed nearer the session high today. The gold bulls have the firm overall near-term technical advantage. Prices are in a steep four-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 $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at $1,300.00 and then at $1,310.00. First support is seen at $1,290.00 and then at this week’s low of 1,280.20. Wyckoff's Market Rating: 7.0

July silver futures prices closed nearer the session high. The silver market bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. 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 $16.75. First resistance is seen at today’s high of $17.745 and then at $18.00. Next support is seen at this week’s low of $17.495 and then at $17.25. Wyckoff's Market Rating: 6.0.

July N.Y. copper closed down 95 points at 254.80 cents today. Prices closed nearer the session high today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 247.25 cents. First resistance is seen at this week’s high of 257.55 cents and then at 259.60 cents. First support is seen at today’s low of 251.55 cents and then at 250.00 cents. Wyckoff's Market Rating: 5.0.

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