Gold Sees More Profit Taking Amid Big Events

(Kitco News) - Gold prices ended the U.S. day session solidly lower on some more profit taking and technical chart consolidation after hitting a seven-week high earlier this week. Three major marketplace occurrences Thursday failed to move the markets in a significant manner. The gold and silver market bulls are still holding the near-term technical advantage amid price uptrends in both metals. August Comex gold was last down $13.60 an ounce at $1,279.60. July Comex silver was last down $0.19 at $17.43 an ounce.

Big marketplace events that took place Thursday saw FBI director James Comey testify to the U.S. Senate. Comey on Wednesday released a prepared text for his statement to the Senate. Comey’s remarks Thursday were deemed by most as not seriously damning to President Trump. Still, Comey’s question-and-answer session did not put the President in a good light at all. Gold prices did move up from the daily lows during Comey’s question-and-answer session.

The European Central Bank held its regular monetary policy meeting Thursday and did not make any changes. ECB president Draghi’s press conference was scrutinized for clues on futures ECB policy moves, but was not a big markets-mover.

Finally, there are U.K. general elections Thursday, the results of which are not yet out. It is expected that the ruling party of Prime Minister Theresa May will win.

The key outside markets on Thursday saw the U.S. dollar index higher on a corrective and short covering rebound after hitting a six-month low Wednesday. The greenback bears are still in firm near-term technical control as dollar index prices are in a three-month-old downtrend.

The other “outside market” on Thursday saw Nymex crude oil futures prices slightly higher after Wednesday’s steep sell off that produced fresh near-term technical damage. A bearish weekly U.S. liquid energy stocks report dropped the oil market Wednesday. The oil market bears have the firm overall near-term technical advantage as prices are well below $50.00 a barrel.

Technically, August gold futures prices closed nearer the session low today. The gold bulls still have the overall near-term technical advantage. Prices are in a 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 $1,250.00. First resistance is seen at today’s high of $1,291.50 and then at $1,300.00. First support is seen at today’s low of $1,273.50 and then at 1,260.00. Wyckoff's Market Rating: 6.5

July silver futures prices closed nearer the session low and saw more profit taking after hitting a six-week high on Tuesday. The silver market bulls still have the slight 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 this week’s high of $17.745 and then at $18.00. Next support is seen at today’s low of $17.285 and then at $17.00. Wyckoff's Market Rating: 5.5.

July N.Y. copper closed up 570 points at 260.85 cents today. Prices closed near the session high and closed at a five-week high close today. The copper bulls have gained the slight overall near-term technical advantage. 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 261.05 cents and then at 263.00 cents. First support is seen at 257.50 cents and then at today’s low of 254.30 cents. Wyckoff's Market Rating: 5.5.

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