Gold Weaker On Profit Taking; U.S. Jobs Report On Deck

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(Kitco News) - Gold prices ended the U.S. day session a bit lower Wednesday, on some mild profit taking from recent gains that pushed the market to a six-week high on Tuesday. Bullish “outside markets” today limited selling pressure in the gold and silver markets. The U.S. dollar index was lower and crude oil prices were higher. December Comex gold was last down $2.60 an ounce at $1,276.80. September Comex silver was last down $0.074 at $16.69 an ounce.

A new record high set in the Dow Jones Industrial Average Wednesday, above 22,000, also likely limited buying interest in the safe-haven gold market. Still, the gold market bulls should be happy their metal has performed fairly well the past couple weeks, amid record highs scored in the major U.S. stock indexes.

Traders and investors are now awaiting what is arguably the most important U.S. economic report of the month that comes out Friday morning: the July employment report from the Labor Department. The key non-farm payrolls component of that report is forecast to show a rise of 180,000 workers. The ADP national employment report for July, released Wednesday morning, showed a rise of 178,000 jobs, which was just below the consensus forecast of up 180,000.

The U.S. dollar index was solidly lower Wednesday and hit another 13-month low. The slumping greenback has been a bullish underlying element for the precious metals. Just recently, it seems many raw commodity markets are waking up to the fact the dollar index has been declining most of this year, and those markets have seen some upside price action that has been helped by the weaker dollar.

Meantime, Nymex crude oil futures were slightly up and trading above $49.00 a barrel Wednesday afternoon. Oil prices hit a two-month high Tuesday and remain in an uptrend on the daily chart. Rising oil prices are also bullish for the raw commodity sector, including the precious metals.

Technically, December gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at this week’s high of $1,280.30 and then at $1,290.00. First support is seen at this week’s low of $1,268.40 and then at $1,260.00. Wyckoff's Market Rating: 6.5

September silver futures prices closed near mid-range after hitting a six-week high early on. The silver bulls and bears are on a level overall near-term technical playing field. Prices are in a four-week-old uptrend 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 $16.00. First resistance is seen at today’s high of $16.96 and then at $17.00. Next support is seen at today’s low of $16.455 and then at last week’s low of $16.225. Wyckoff's Market Rating: 5.0.

September N.Y. copper closed up 25 points at 288.35 cents today. Prices closed nearer the session high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at Tuesday’s high of 290.20 cents and then at this week’s high of 292.00 cents. First support is seen at today’s low of 286.15 cents and then at 285.00 cents. Wyckoff's Market Rating: 8.0.