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A.M. Kitco Metals Roundup: Gold Firmer Amid Bullish Outside Markets; U.S. Data Awaited

Tuesday July 16, 2013 7:53 AM

(Kitco News) - Gold prices are modestly higher in early U.S. trading Tuesday, supported by the key "outside markets" being in a bullish daily posture for the precious metals-a lower U.S. dollar index and higher crude oil prices . August gold was last up $6.70 at $1,290.20 an ounce. Spot gold was last quoted down $6.10 at $1,279.40. September Comex silver last traded up $0.126 at $19.965 an ounce.

There is a significant batch of U.S. economic data due out Tuesday that could move the gold and silver markets. Data due for release includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the consumer price index, Treasury international capital data, industrial production and capacity utilization, and the NAHB housing market index.

However, the world market place is looking ahead to Wednesday's appearance by Federal Reserve Chairman Ben Bernanke before the U.S. House of Representatives, where he will report on U.S. monetary policy and the economy. Traders hope the Fed chief will offer fresh clues on when the Fed will start to back off on its monthly bond-buying program (quantitative easing). Many are still thinking the Fed will do such later this year and as soon as September. However, Bernanke in remarks last week hinted he wants QE to start to wind down later rather than sooner because he feels the U.S. economic recovery is still shaky.

In overnight news, European Union imports and exports declined in May, suggesting the Euro zone will continue in economic contraction for yet another quarter, which would be the seventh straight. It was also reported Tuesday the German ZEW economic expectations index declined in July,

Reports overnight said demand for physical coming out of India and Asia is on the upswing, which is also supportive for the overall gold market.

The London A.M. gold fix is $1,286.00 versus the previous London P.M. fixing of $1,284.75.

Technically, the gold market bears remain in overall near-term technical control. However, the bulls have gained some upside near-term technical momentum recently. The bulls still have much work to do to suggest a near-term price uptrend can be sustained. The gold bulls' next upside near-term price objective is to produce a close above technical resistance at $1,300.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week's low of $1,214.40. First resistance is seen at last week's high of $1,297.20 and then at $1,300.00. First support is seen at the overnight low of $1,275.50 and then at $1,262.10.

Silver bears have the overall near-term technical advantage but bulls have gained a bit of upside momentum recently. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $21.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of $19.67. First resistance is seen at last week's high of $20.25 and then at $20.50. Next support is seen at the overnight low of $19.66 and then at $19.43.

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Read the latest news in gold and precious metals markets at Kitco News.

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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