Gold Ends Slightly Up; Little Benefit From Bullish Outside Markets

(Kitco News) - Gold prices were ending the U.S. day session just slightly higher Tuesday and down from the session high. The gold market bulls got scant help today from bullish outside markets that included a sharply lower U.S. dollar index and higher crude oil prices. A weaker U.S. stock market Tuesday also failed to give the safe-haven metal much lift. Gold prices Monday hit a five-week low. August Comex gold was last up $1.60 an ounce at $1,248.00. September Comex silver was last up $0.024 at $16.655 an ounce.

A major cyber attack on business entities worldwide Tuesday had little initial impact on the marketplace. However, the hackers once again underscored the vulnerability of the internet that the world has become so dependent upon.

Focus of the marketplace Tuesday was on speeches by major central bankers. European Central Bank President Mario Draghi said at a conference in Portugal the ECB will not be in a hurry to wind down its accommodative monetary policy because the European Union’s collective economy is still in recovery mode. However, he also said the Euro zone economy is growing “above trend” and said inflation will increase at some point down the road, which will prompt the ECB to tighten its monetary policy. Draghi’s overall upbeat comments on the Euro zone lifted the Euro currency to solid gains and sent European bond yields higher.

Fed Chair Janet Yellen was making a speech in London as of this writing Tuesday.  Her remarks will be closely examined for any clues on the future direction and timing of U.S. monetary policy.

The key “outside markets” on Tuesday saw Nymex crude oil futures prices higher on more short covering after hitting a 14-month low last week. The oil market bears still have the solid overall near-term technical advantage as prices are trading below $44.00 a barrel. Meantime, the U.S. dollar index was sharply lower today. The greenback bears have the firm overall near-term technical advantage.

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Technically, August gold futures prices closed near mid-range. The gold bears have the overall near-term technical advantage as prices are in a three-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,270.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,217.80. First resistance is seen at today’s high of $1,253.80 and then at last week’s high of $1,260.00. First support is seen at today’s low of $1,241.80 and then at this week’s low of 1,236.50. Wyckoff's Market Rating: 4.0

September silver futures prices closed near mid-range today. The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.125. First resistance is seen at last week’s high of $16.825 and then at $17.00. Next support is seen at $16.50 and then at this week’s low of $16.28. Wyckoff's Market Rating: 3.0.

September N.Y. copper closed up 230 points at 256.15 cents today. Prices closed nearer the session high and hit a seven-week high today. The copper bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. 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 June low of 252.90 cents. First resistance is seen at today’s high of 266.95 cents and then at 270.00 cents. First support is seen at today’s low of 262.60 cents and then at 260.00 cents. Wyckoff's Market Rating: 6.0.