Gold Weaker On More Profit Taking; Big U.S. Data Week Ahead

(Kitco News) - Gold prices ended a quieter U.S. day session slightly lower Monday. A lack of new, bullish fundamental developments on the geopolitical front has somewhat limited buying interest in the safe-haven metal, and has allowed some profit taking from the shorter-term futures traders to set in. August Comex gold was last down $3.00 an ounce at $1,268.40. July Comex silver was last down $0.283 at $16.94 an ounce.

Focus is on this week’s FOMC meeting that begins on Tuesday morning and ends Wednesday afternoon with a statement. The Federal Reserve is expected by many to slightly raise U.S. interest rates. Traders and investors are also keen to see if the Fed acts to further reduce its big balance sheet of government securities.

The U.S. economic report pace also picks up speed significantly Tuesday and for the rest of the week.

The “outside markets” on Monday saw Nymex crude oil futures prices higher on some short covering. The oil market bears still have the firm overall near-term technical advantage as prices are well below $50.00 a barrel. Meantime, the U.S. dollar index was slightly weaker. The greenback bears also hold the firm near-term technical advantage.

Technically, August gold futures prices closed near mid-range today. The gold bulls still have the overall near-term technical advantage. However, they are fading and need to show some fresh power soon. Prices are still in a four-week-old uptrend on the daily bar chart, but just barely. 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 $1,240.00. First resistance is seen at $1,275.00 and then at $1,280.00. First support is seen at today’s low of $1,265.60 and then at 1,260.00. Wyckoff's Market Rating: 6.0

July silver futures prices closed nearer the session low today. The silver market bulls have lost their overall near-term technical advantage amid the recent sell-off. A four-week-old uptrend on the daily bar chart has been negated. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the June high of $17.745 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.06. First resistance is seen at $17.00 and then at today’s high of $17.215. Next support is seen at today’s low of $16.89 and then at $16.75. Wyckoff's Market Rating: 5.0.

July N.Y. copper closed down 330 points at 261.65 cents today. Prices closed nearer the session low today. The copper bulls have 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 last week’s high of 265.20 cents and then at 269.45 cents. First support is seen at 259.75 cents and then at 257.50 cents. Wyckoff's Market Rating: 5.5.

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