Gold Hits 3.5-Mo. Low Overnight, Rebounds In U.S. Trading

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(Kitco News) - Gold prices were ending the U.S. day session with modest gains Wednesday, after scoring a 3.5-month low in overnight action. Some short covering in the futures market and bargain hunting in the cash surfaced following the overnight selling pressure. Meantime, silver prices slumped to a 14-month low amid a bearish near-term technical posture. August Comex gold was last up $3.50 an ounce at $1,222.80. September Comex silver was last down $0.122 at $15.965 an ounce.

The world geopolitical scene has heated up again and that also benefitted safe-haven gold a bit Wednesday. North Korea says it has an intercontinental ballistic missile that the regime says can reach anywhere in the world. The U.S. appeared to confirm that North Korea recently launched an intercontinental ballistic missile. This has riled the U.S. and other Western nations. The Trump administration wants to take a hard line against the North Koreans, but its options are very limited. This matter will likely get worse before it gets better.

As of this writing traders were awaiting the release of the latest minutes from the June meeting of the Federal Open Market Committee (FOMC). Traders will parse the report for any new clues on the future direction and timing of U.S. monetary policy moves. Notions of a more hawkish U.S. Federal Reserve are also favoring the precious metals market bears, at present.

The key “outside markets” on Wednesday saw Nymex crude oil futures prices sharply lower amid a global supply glut. The big drop in oil prices today weighed down most of the raw commodity sector, including the precious metals. Meantime, the U.S. dollar index was slightly higher today, on more short covering after hitting a nine-month low last week. The greenback bears still have the firm overall near-term technical advantage.

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Technically, August gold futures prices closed near mid-range today. The gold bears have the firm overall near-term technical advantage as prices are in a four-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 $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,228.40 and then at $1,240.00. First support is seen at today’s low of $1,216.50 and then at 1,210.00. Wyckoff's Market Rating: 3.0

September silver futures prices closed nearer the session low today. The silver bears have the solid overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. 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 $15.00. First resistance is seen at today’s high of $16.19 and then at $16.28. Next support is seen at today’s low of $15.85 and then at $15.50. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed down 320 points at 266.05 cents today. Prices closed near mid-range today on profit taking. The copper bulls still have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 284.95 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 269.15 cents and then at the June high of 271.85 cents. First support is seen at today’s low of 264.35 cents and then at 262.00 cents. Wyckoff's Market Rating: 6.0.