Gold Backs Down On Normal Profit Taking

(Kitco News) - Gold prices were ending the U.S. day session moderately lower Tuesday. Some mild profit-taking pressure was featured after recent price gains that saw gold hit a multi-month high last week. December Comex gold was last down $5.10 an ounce at $1,291.60. September Comex silver was last up $0.01 at $17.025 an ounce.

World stock markets were mostly up Tuesday and U.S. stock indexes were solidly higher in early-afternoon action. The gains in world stock markets were also a daily negative for the safe-haven gold market. 

The U.S. dollar index was higher Tuesday, which was also a daily bearish element for the precious metals markets. The greenback has been trending higher during the month of August, but in a choppy fashion. Meantime, the other outside market saw Nymex crude oil futures are firmer. Trading in oil has also been choppy recently.

The highlight of the trading week is the annual central bankers meeting held in Jackson Hole, Wyoming, Thursday through Saturday. Highlights of central bank speakers from around the world include Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. The marketplace will closely examine the Jackson Hole speeches for clues on future monetary policy moves by the world’s major central banks. In recent years the Jackson Hole central bankers confab has significantly moved the markets.

Early this week has seen a light U.S. economic data slate.

Technically, December gold futures prices closed near mid-range today. Prices Monday closed at a 2.5-month high close. The gold bulls still have the solid overall near-term technical advantage. Prices are in a steep six-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 this year’s high of $1,307.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,272.70. First resistance is seen at $1,300.00 and then at $1,307.00. First support is seen at this week’s low of $1,286.20 and then at $1,280.00. Wyckoff's Market Rating: 7.0

September silver futures prices closed near mid-range today. The silver bulls have the overall near-term technical advantage. Prices hit a nine-week high last Friday and are in a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $16.56. First resistance is seen at last week’s high of $17.32 and then at $17.50. Next support is seen at this week’s low of $16.83 and then at $16.56. Wyckoff's Market Rating: 6.0.

September N.Y. copper closed up 70 points at 298.75 cents today. Prices closed near mid-range and hit a three-year high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a three-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 315.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the August low of 286.00 cents. First resistance is seen at today’s high of 301.45 cents and then at 305.00 cents. First support is seen at today’s low of 296.70 cents and then at this week’s low of 293.05 cents. Wyckoff's Market Rating: 8.5.