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P.M. Kitco Metals Roundup: Gold Ends Modestly Up Amid Lower U.S. Dollar; Bernanke On Deck

Tuesday July 16, 2013 2:03 PM

(Kitco News) - Gold prices ended the U.S. day session modestly higher in quieter trading Tuesday. The precious metals were supported by a lower U.S. dollar index Tuesday. More short covering and bargain hunting were featured. August gold was last up $7.00 at $1,290.50 an ounce. Spot gold was last quoted up $8.60 at $1,292.25. September Comex silver last traded up $0.116 at $19.955 an ounce.

The world market place is looking ahead to Wednesday morning'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.

There was a batch of U.S. economic data out Tuesday. The consumer price index for June came in a bit higher than expected, at up 0.5%, while industrial production and capacity utilization did not stray too far from expectations. This data had little impact on the market place or precious metals.

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. Some pundits are saying they believe central banks are stepping in to buy gold at the lower price levels.

The London P.M. gold fix is $1,291.50 versus the previous London P.M. fixing of $1,284.75.

Technically, August gold futures prices closed nearer the session high Tuesday. The bulls are still hanging on to some near-term technical momentum but need to show more power to begin to suggest the fledgling uptrend on the daily chart can be extended. The gold bears still have the overall near-term technical advantage. The gold bulls' next upside near-term price breakout objective is to produce a close above solid 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 Tuesday's low of $1,275.60 and then at $1,262.10. Wyckoff's Market Rating: 3.0

September silver futures prices closed near mid-range Tuesday. Short covering was featured. Bulls have recently gained a bit of upside momentum but have more work to do to suggest a near-term market bottom is in place. The silver bears still have the overall near-term chart advantage. 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 $18.67. First resistance is seen at last week's high of $20.25 and then at $20.50. Next support is seen at Tuesday's low of $19.66 and then at $19.43. Wyckoff's Market Rating: 2.5.

September N.Y. copper closed up 355 points at 318.00 cents Tuesday. Prices closed nearer the session high and saw more short covering. Copper bears still have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of 302.50 cents. First resistance is seen at last week's high of 320.10 cents and then at 323.00 cents. First support is seen at 315.00 cents and then at this week's low of 312.45 cents. Wyckoff's Market Rating: 3.0.

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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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