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A.M. Kitco Metals Roundup: Gold Weaker In Quieter Summertime Market Place

(Kitco News) - Comex gold futures prices are modestly lower in early U.S. dealings Friday. It's another quiet, summertime trading affair. There has been a lack of major, market-moving news late this week. Traders and investors are looking ahead to next week, when the U.S. Federal Open Market Committee meets and the U.S. employment report is released. With August right around the corner, trading volumes in many markets are likely to decline as summertime family vacations take many traders away from the markets. August gold was last down $1.40 at $1,327.40 an ounce. Spot gold was last quoted down $6.10 at $1,328.50. September Comex silver last traded down $0.174 at $19.985 an ounce.

The European stock markets were weaker overnight as focus there is on corporate earnings. Asian stocks were mixed, with Japan's Nikkei stock index down and China's Shanhai were higher.

The International Monetary Fund (IMF) reported Friday that central banks in emerging market countries continued to add to their gold reserves in June. Russia was also a buyer, while Germany was reported as a seller of gold last month. The gold market bulls who have done some bargain hunting at lower price levels recently have to feel pretty good about the fact that central banks of sovereign nations are doing the same.

The U.S. dollar index is lower Friday and hit a fresh five-week low overnight. The greenback bears have the overall near-term chart advantage. Meantime, Nymex crude oil futures prices are lower again Friday morning on more profit taking. While the crude oil bears still have the overall near-term technical advantage, they are now fading.

U.S. economic data due for release Friday includes the University of Michigan consumer sentiment survey.

The London A.M. gold fix is $1,327.75 versus the previous London P.M. fixing of $1,326.00.

Technically, August gold futures still see a four-week-old price uptrend is in place on the daily chart. The gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at the overnight high of $1,340.50 and then at $1,350.00. First support is seen at Thursday's low of $1,308.40 and then at $1,300.00.

September silver futures are in a four-week-old uptrend on the daily chart, but need to show more power soon to keep it in place. 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 $19.215. First resistance is seen at the overnight high of $20.355 and then at this week's high of $20.575. Next support is seen at Thursday's low of $19.75 and then at this week's low of $19.495.

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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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