A generic image of a pen and on top of a chart.
Markets

P.M. Kitco Metals Roundup: Comex Gold, Silver End Higher on Safe-Haven Buying, Firmer Crude Oil, Weaker U.S. Dollar Index

(Kitco News) - Comex gold and silver futures prices ended higher Tuesday on safe-haven buying interest and on support from bullish "outside markets"--a weaker U.S. dollar index and higher crude oil prices . Importantly, the precious metals market bulls are regaining upside near-term technical momentum, too. June gold last traded up $8.50 an ounce at $1,523.90. Spot gold last traded up $6.60 an ounce at $1,524.50. July Comex silver last traded up $1.336 at $36.24 an ounce.

The simmering European Union sovereign debt crisis has again injected heightened investor uncertainty into the market place so far this week. Ratings agencies have recently issued fresh downgrades and warnings regarding the debt and financial conditions of the so called "PIG" countries in the EU. This time its Greece that is garnering the most scrutiny in the market place. However, Belgium's financial outlook was also downgraded this week. The EU debt crisis is not going to disappear and is an underlying bullish factor for safe-haven assets like gold. In fact, it could well be that the world market place is presently underestimating the seriousness of the EU's lingering debt problems, which could suddenly boil over into a worldwide debt contagion. Rising U.S. Treasury prices (lower yields) are another hint that investor risk appetite is shrinking.

Crude oil prices traded moderately higher Tuesday as prices hovered around $99.00 a barrel. Trading has turned choppy and volatile in crude. The near-term technical posture in the crude oil market is still shaky, as a bearish pennant pattern has formed on the daily bar chart for July crude oil. Crude oil has been and will continue to be the leader in the raw commodity market sector. If crude embarks on a fresh leg down in prices, gains in the precious metals markets will at least be limited.

The U.S. dollar index traded weaker Tuesday. The dollar index bulls had regained some upside technical momentum following solid gains Monday. There are some early technical clues that the dollar index has put in a market bottom. Keep in mind that gold and the dollar index can rally in tandem if the market place perceives keener market uncertainty, such as a further, serious deterioration in the EU debt crisis.

The London P.M. gold fixing $1,527.00 versus the previous P.M. fixing of $1,510.50.

Technically, June Comex gold futures closed nearer the session high Tuesday and hit a fresh three-week high. Gold bulls have the overall near-term and longer-term technical advantage and are once again gaining upside near-term technical momentum. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at $1,550.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,485.00. First resistance is seen at Tuesday's high of $1,529.00 and then at $1,540.00. First support is seen at Tuesday's low of $1,513.20 and then at Monday's low of $1,503.70. Wyckoff's Market Rating: 7.0.

July Comex silver futures closed nearer the session high Tuesday and hit a fresh two-week high. Silver bulls have regained upside near-term technical momentum to begin to suggest that a near-term market low is in place, but have more work to do to suggest an uptrend can be restarted. 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 $37.00 an ounce. First resistance is seen at Tuesday's high of $36.40 and then at $37.00. Next support is seen at $35.75 and then at $35.50. Wyckoff's Market Rating: 5.5.

July N.Y. copper closed up 255 points at 401.70 cents Tuesday. Prices closed near mid-range. The key "outside markets" were bullish for copper Tuesday, as the U.S. dollar index was weaker, while crude oil prices were higher. Copper bulls and bears are presently on a level near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week's high of 411.05 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of 385.35 cents. First resistance is seen at Tuesday's high of 405.80 cents and then at 407.50 cents. First support is seen at 400.00 cents and then at Tuesday's low of 396.20 cents. Wyckoff's Market Rating: 5.0.

Follow me on Twitter! If you want daily, or nightly, up-to-the-second market analysis on gold and silver price action, follow me on Twitter. It's free, too. My account is @jimwyckoff .

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.

Other Topics

Commodities

Latest Markets Videos