Gold, Silver Bulls Need A Safe-Haven Spark

(Kitco News) - Gold and silver prices are lower in early-afternoon U.S. trading Tuesday. Silver prices hit a six-month low today. A solidly higher U.S. dollar index and stable U.S. stocks were in part to blame for selling pressure in the precious metals markets today. Still, safe-haven metals bulls are watching some elements that are not quite on the front burner of the marketplace, but may be soon. August gold futures were last down $6.50 an ounce at $1,282.70. July Comex silver prices were last down $0.24 at $14.315 an ounce.

There are several matters on the minds of traders and investors following the long U.S. holiday weekend. The U.S.-China trade war continues with no agreement in sight and both countries appearing to dig in their heels as a trade agreement anytime soon appears unlikely.

European elections last weekend produced gains in the populist parties in the U.K., while Greece’s prime minister said he will call for a general election in an effort to lower taxes. It seems that every couple of years, during the summertime, that political turmoil in the European Union moves closer to the front burner of the world marketplace.

President Trump downplayed recent test missile launches from North Korea, and has also been quieter on the U.S.-Iran staredown. However, these two issues could quickly heat up.

The key “outside markets” today see the U.S. dollar index trading solidly higher, while Nymex crude oil prices are firmer and trading just above $59.00 a barrel. The greenback has been strong recently and the USDX is not far below its recent two-year high. Meantime, crude oil bulls are working to stabilize prices after last week’s steep downdraft that shaved about $6.00 off the price of a barrel of crude.

Technically, August gold futures prices closed nearer the session low today and scored a bearish “outside day” down on the daily bar chart. The bears have the overall near-term technical advantage. Prices are in a three-month-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 $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,273.20. First resistance is seen at today’s high of $1,292.60 and then at $1,300.00. First support is seen at $1,280.00 and then at $1,273.20. Wyckoff's Market Rating: 4.0

July silver futures closed down $0.24 at $14.31 today. Prices closed near the session low and hit a six-month low today. The silver bears have the solid overall near-term technical advantage. A three-month-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the November low of $14.175. First resistance is seen at $14.50 and then at last week’s high of $14.635. Next support is seen at today’s low of $14.265 and then at $14.175. Wyckoff's Market Rating: 1.5.

July N.Y. copper closed down 45 points at 269.50 cents today. Prices closed nearer the session low today. The copper bears have the firm overall near-term technical advantage. Prices are in a steep five-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 280.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 256.10 cents. First resistance is seen at today’s high of 271.80 cents and then at 275.00 cents. First support is seen at last week’s low of 265.45 cents and then at 262.50 cents. Wyckoff's Market Rating: 3.0.