Gold, Silver Mildly Up On Bargain Hunting, Short Covering

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(Kitco News) - Gold and silver prices ended a typical summertime U.S. trading session slightly higher on some perceived bargain-basement buying in the cash markets and on the covering of previously established short positions (short covering) in the futures markets. Gold dropped to a nearly four-month low overnight, while silver hit a 16-month low. The bears still have a firm grip on both precious metals markets. August Comex gold was last up $2.10 an ounce at $1,211.80. September Comex silver was last up $0.17 at $15.595 an ounce.

Generally up-trending world stock markets and upbeat trader and investor attitudes recently have been a major bearish element for the precious metals markets and especially safe-haven gold.

There was no major U.S. economic data released Monday. However, the report pace picks up starting Wednesday and through the end of the week, including Fed Chair Janet Yellen speaking to the U.S. Congress on the Fed’s monetary policy on Wednesday and Thursday.

The key “outside markets” on Monday saw Nymex crude oil futures slightly higher and trading below $45.00 a barrel. The oil market bears are still in firm near-term technical control. Meantime, the U.S. dollar index was near steady in afternoon trading, on some mild short covering after last week hitting a 10-month low.

Technically, August gold futures prices closed nearer the session high. The gold bears still have the firm overall near-term technical advantage as prices are in a five-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 $1,240.00. 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 $1,215.00 and then at $1,220.00. First support is seen at today’s low of $1,204.00 and then at 1,200.00. Wyckoff's Market Rating: 3.0.

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September silver futures prices closed nearer the session high today on short covering after hitting a 15-month low overnight. The silver bears still have the solid overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 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 $15.67 and then at $16.00. Next support is seen at today’s low of $15.145 and then at $15.00. Wyckoff's Market Rating: 2.0.

September N.Y. copper closed up 25 points at 264.95 cents today. Prices closed near mid-range today in quieter trading. The copper bulls have the slight overall near-term technical advantage. Prices are in a nine-week-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 269.15 cents and then at the June high of 271.85 cents. First support is seen at today’s low of 263.10 cents and then at 260.00 cents. Wyckoff's Market Rating: 5.5.