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A.M. Kitco Metals Roundup: Comex Gold, Silver Weaker amid Lower Crude Oil, Stronger U.S. Dollar Index

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(Kitco News) - Comex gold and silver futures prices are trading modestly lower Monday morning, as lower crude oil prices and a stronger U.S. dollar index weigh on the precious metals. However, selling interest in the metals is being limited by safe-haven investor demand for gold and silver as the Greek debt crisis continues to play out. August gold last traded down $3.40 an ounce at $1,535.70. Spot gold last traded down $5.20 an ounce at $1,535.25. July Comex silver last traded down $0.408 at $35.34 an ounce.

After weekend meetings between Greek officials, the European Union and the International Monetary Fund, there was no agreement reached on a bailout package regarding Greece's debt crisis. In fact, those officials are now saying it will be mid-July before any agreement is reached. Meantime, there is a vote of confidence for the Greek president scheduled for Tuesday. Safe-haven buying interest continues to underpin the precious metals, and especially gold, as the EU sovereign debt saga continues. Veteran market watchers have realized there is only so much make-up you can try to put on a pig, but a pig it is, still. Look for gold prices to continue to see limited downside price pressure due to the major EU debt crisis.

The U.S. dollar index is trading higher Monday morning on safe-haven buying interest and more short covering as the EU debt crisis wears on. There is concern the Greece crisis could spread to a European debt contagion, or beyond. The Euro currency has been under strong selling pressure due to the EU debt crisis. While the stronger dollar index has limited the upside in the precious metals, history shows that both the greenback and gold can appreciate during times of keener market anxiety.

Crude oil prices are lower again Monday morning and hit a fresh six-month low near $91.00 a barrel overnight. Recent price action in crude oil has produced serious near-term chart damage to suggest still some more downside price potential for crude in the near term. Further downside moves in crude oil would be a bearish underlying factor for the precious metals markets.

There is no major U.S. economic data due for release Monday.

The London A.M. gold fixing was $1,537.00 versus the previous P.M. fixing of $1,537.50.

Technically, August Comex gold futures bulls still have the overall near-term and longer-term technical advantage. A 4.5-month-old uptrend is in place on the daily bar chart and a 10-year-old uptrend is in place on the longer-term monthly chart. Bulls do need to show some more power soon to regain some near-term upside technical momentum that they enjoyed in early June. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at the June high of $1,555.00. Bears' next near-term downside price objective is closing prices below major psychological support at $1,500.00. First resistance is seen at last week's high of $1,543.00 and then at $1,550.00. First support is seen at the overnight low of $1,535.60 and then at $1,530.00.

July Comex silver futures bulls still have the overall near-term and longer-term technical advantage, but also need to show fresh power soon to regain fresh upside near-term technical momentum. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of $32.30. Bulls' next upside price objective is producing a close above solid technical resistance at $37.86 an ounce. First resistance is seen at $36.00 and then at the overnight high of $36.20. Next support is seen at the overnight low of $35.26 and then at $35.00.

Markets are volatile amid the Greek debt crisis! You need to follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading , then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff .

By Jim Wyckoff contributing to 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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