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A.M. Kitco Metals Roundup: Comex Gold Firmer, Silver Near Steady as Markets Consolidate in Quieter Trading

(Kitco News) - Comex gold prices are trading modestly higher Tuesday morning, while silver prices are near unchanged, in quieter trading as the markets attempt to consolidate recent price action. The crude oil futures market is also trading near steady in the early going Tuesday, while the U.S. dollar index is firmer. June gold last traded up $2.20 an ounce at $1,492.80. Spot gold last traded up $3.00 an ounce at $1,493.25. July Comex silver last traded down $0.072 at $34.06 an ounce.

Crude oil prices are hovering around $97.00 a barrel in early trading Tuesday. The crude bulls have faded recently amid worldwide demand erosion due to the recent higher prices. Crude oil is still the leader in the raw commodity market sector. If crude oil prices back off some more, many other commodity markets, including precious metals, will likely do the same, or at least see upside price potential limited.

The U.S. dollar index is trading firmer Tuesday morning. The dollar index bulls have gained some upside technical momentum recently, to begin to suggest that at least a near-term market low is in place. Any sustained recovery in the U.S. dollar index would be a bearish development for the precious metals markets.

News reports said billionaire investor George Soros dramatically reduced his gold ETF and other gold investment holdings in recent weeks, according to SEC filings released Monday.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs chain store sales index, new residential construction, the weekly Johnson Redbook retail sales index, industrial production and capacity utilization and the weekly API energy stocks report.

The London A.M. gold fixing is $1,495.50 versus the previous P.M. fixing of $1,500.75.

Technically, June Comex gold futures bulls still have the overall near-term and longer-term technical advantage. However, the bulls have faded recently and need to show some fresh power soon to avoid further near-term chart damage. Prices have been trending lower for two weeks, since the May 2 all-time high of $1,577.40. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at last week's high of $1,526.80. Bears' next near-term downside price objective is closing prices below solid technical support at the May low of $1,462.50. First resistance is seen at $1,500.00 and then at Monday's high of $1,504.30. First support is seen at Monday's low of $1,486.00 and then at last week's low of $1,477.60.

July Comex silver futures have seen serious near-term chart damage occur recently, to suggest at least a near-term market top is in place. The bears still have some downside technical momentum as the recent pause is not bullish. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of $32.30. Bulls' next upside price objective is producing a close above solid technical resistance at $37.00 an ounce. First resistance is seen at $34.50 and then at $35.00. Next support is seen at the overnight low of $33.50 and then at $33.00.

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By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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