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P.M. Kitco Metals Roundup: Comex Gold, Silver End Weaker as Crude Oil Dips, but Losses Limited by Weaker U.S. Dollar

(Kitco News) - Comex gold and silver futures prices closed modestly lower Thursday, as the crude oil futures market saw moderate selling pressure. However, losses in the precious metals were limited as the U.S. dollar index sold off Thursday, amid some weaker U.S. economic data. June gold last traded down $2.70 an ounce at $1,493.10. Spot gold last traded down $3.90 an ounce at $1,493.50. July Comex silver last traded down $0.172 at $34.925 an ounce.

Crude oil prices backed off Thursday after scoring solid gains Wednesday. Crude prices are presently hovering around $99.00 a barrel. Crude oil has been and will continue to be the leader in the raw commodity market sector. If crude prices can hold above $100.00 a barrel, then the commodity sector would see that as a bullish underlying factor due to inflation concerns.

The U.S. dollar index came under selling pressure Thursday amid a batch of mostly weak U.S. economic data that included home sales, leading economic indicators and a Philadelphia Fed survey. Those three weaker-than-expected reports trumped a weekly jobless claims report that did show less claims than last week. The dollar index bulls are fading again. A resumption of the downtrend in the dollar index would be bullish for the precious metals and most other commodity markets.

The London P.M. gold fixing $1,493.00 versus the previous P.M. fixing of $1,496.50.

Technically, June gold futures closed near mid-range Thursday. Price action the past two weeks has been sideways and choppy, in a consolidation mode. Gold bulls still have the overall near-term and longer-term technical advantage. The bears can argue prices have been trending lower for nearly three weeks, from the 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 this week's high of $1,504.30. First support is seen at Thursday's low of $1,485.80 and then at last week's low of $1,477.60. Wyckoff's Market Rating: 6.5.

July silver futures prices closed near mid-range. While near-term chart damage has occurred in silver recently, the market has at least temporarily stabilized as trading has been choppy and sideways the past week. 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 Thursday's high of $35.75 and then at $36.00. Next support is seen at Thursday's low of $34.525 and then at $34.00. Wyckoff's Market Rating: 5.0.

July N.Y. copper closed down 580 points at 404.70 cents Thursday. Prices closed nearer the session low. Copper was pressured by lower crude oil prices and some weak U.S. economic data Thursday. Copper bulls and bears are on a level near-term technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 420.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at this week's low of 394.65 cents. First resistance is seen at 407.50 cents and then at 410.00 cents. First support is seen at 402.30 cents and then at 400.00 cents. Wyckoff's Market Rating: 5.0.

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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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