Gold Adding To Daily Losses Heading Into U.S. Close

(Kitco News) - Gold prices are moderately down, near their session lows and at a four-week low in late U.S. trading Monday. The recent sell off in the U.S. dollar index appears to be stabilizing, which is a negative for the precious metals markets. Crude oil prices are weaker, which is also a bearish daily element for the precious metals markets. The daily charts for gold and silver have turned more bearish recently, which is also inspiring the technically biased sellers. August Comex gold was last down $8.40 an ounce at $1,248.10. July Comex silver was last down $0.141 at $16.52 an ounce.

World stock markets were mostly higher Monday, including U.S. stock indexes. Many world stock markets have been in rally mode, with some at or near record or for-the-move highs. That’s also a bearish element for the competing asset metals class.

Ideas of a more hawkish U.S. Federal Reserve after last week’s FOMC meeting are also negative for the precious metals and for the raw commodity sector.

There was another potential terror attack in London Sunday when a car rammed a crowd of people and killed at least one. The markets were not impacted by the event. News that a U.S. fighter jet shot down a Syrian military aircraft did not have a big impact on the markets, either. However, gold would likely see some safe-haven demand if the U.S. and Russia tensions became significantly elevated over the matter.

There was no major U.S. economic data released Monday, and it will be a quieter week, overall, for U.S. reports.

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

Technically, August gold futures bulls and bears are on a level overall near-term technical playing field, but the bears have the momentum on their side. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,284.20. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,225.00. First resistance is seen at the overnight high of $1,257.30 and then at $1,268.50. First support is seen at $1,240.00 and then at $1,230.00. Wyckoff’s Market Rating: 5.0

July silver bears have the overall near-term technical advantage as prices hit a four-week low today. The next upside price breakout objective is closing futures 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 $16.80 and then at $17.00. Next support is seen at $16.25 and then at $16.06. Wyckoff's Market Rating: 3.0.