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(Kitco News) - The bears took advantage of a thin, holiday-type trading atmosphere to pounce on the gold market Monday, pushing prices sharply lower and to a seven-week low. Prices were ended near their daily lows as of this writing. The recent quieter world geopolitical scene is prompting scant demand for the safe-haven metal. A solid rebound in the U.S. dollar index to start the trading week also worked against the precious metals market bulls Monday. August Comex gold was last down $21.60 an ounce at $1,220.70.September Comex silver was last down $0.497 at $16.135 an ounce.
Most metals market watchers reckoned it would be a quieter day in the U.S. markets Monday. Many traders and investors opted to take an extended holiday weekend ahead of U.S. Independence Day on Tuesday. Some U.S. markets closed early Monday. However, once the U.S. Comex futures markets opened the overnight losses were quickly extended in gold and silver as prices were pushed into pre-placed sell stop orders that exacerbated their declines.
The key “outside markets” on Monday saw Nymex crude oil futures prices higher and hitting a three-week high. Oil bulls have upside momentum to begin to suggest that a near-term bottom is in place. Meantime, the U.S. dollar index is solidly higher Monday, on short covering after hitting a nine-month low last Friday. The greenback bears still have the firm overall near-term technical advantage.
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![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically, August gold futures bears have the overall near-term technical advantage and gained more power today. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,260.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,200.00. First resistance is seen at $1,230.00 and then at the overnight high of $1,242.60. First support is seen at the May low of $1,217.80 and then at $1,210.00. Wyckoff’s Market Rating: 3.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
September silver bears have the solid overall near-term technical advantage. Prices hit a six-month low today. The next upside price breakout objective is closing futures 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 $16.00. First resistance is seen at $16.28 and then at $16.50. Next support is seen at $16.00 and then at the December low of $15.87. Wyckoff's Market Rating: 2.5.
