P.M. Kitco Metals Roundup: Gold Ends Slightly Lower On Mild Downside Technical Correction After Big Gains Monday
(Kitco News) - Gold prices ended the U.S. day session modestly lower Tuesday, on a downside technical correction from the strong gains Monday that propelled the market to a four-week high. The gold and silver market bulls have gained upside technical momentum to begin to suggest near-term market lows are in place. August gold was last down $1.10 at $1,335.00 an ounce. Spot gold was last quoted up $0.40 at $1,336.00. September Comex silver last traded down $0.239 at $20.27 an ounce.
Somewhat adding to the mildly negative daily tone in gold Tuesday were reports late Monday that India's government will add further restrictions on the importation of gold, in order to reduce its current account deficit.
It was another quiet, summertime day in the market place Tuesday. Overnight, Asian stock markets were supported on reports that China's premier said China's economic growth needs to be above a 7% annual pace in order to reach China's goal of doubling the size of its economy this decade. Last week, China's second-quarter GDP was reported at a 7.5% annual clip. The premier's comments suggested China will focus more on economic stimulus. A key Chinese manufacturing report is due out Wednesday. European stocks were also lifted modestly on the China news.
The U.S. dollar index was weaker again Tuesday as the greenback bears have the overall near-term chart advantage to suggest the dollar index has put in a market top. Meantime, Nymex crude oil futures prices were firmer. The crude oil bears have the overall near-term technical advantage. These two key "outside markets" were in a bullish daily posture for the precious metals markets Tuesday afternoon and that did limit selling pressure in gold and silver markets.
The London P.M. gold fix is $1,333.50.
Technically, August gold futures closed nearer the session high Tuesday and saw a mild downside technical correction from the big gains on Monday. The bulls have gained upside near-term technical momentum to suggest a market bottom is in place. A three-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 Monday's high of $1,339.10 and then at $1,350.00. First support is seen at $1,323.00 and then at $1,310.00. Wyckoff's Market Rating: 4.0
September silver futures prices closed near mid-range Tuesday on a corrective pullback from big gains Monday. Prices did hit a fresh four-week high early on. Prices are in a three-week-old uptrend on the daily chart. Bulls have gained upside near-term technical momentum to suggest that a market bottom is 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 Tuesday's high of $20.595 and then at $20.75. Next support is seen at $20.00 and then at $19.75. Wyckoff's Market Rating: 3.5.
September N.Y. copper closed up 145 points at 319.95 cents Tuesday. Prices closed near the session high and closed at a fresh four-week high close. The key "outside markets" were bullish for copper Tuesday. Copper are in a four-week-old uptrend on the daily bar chart. 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 305.00 cents. First resistance is seen at Monday's high of 321.50 cents and then at 325.00 cents. First support is seen at Tuesday's low of 319.90 cents and then at Monday's low of 314.40 cents. Wyckoff's Market Rating: 4.0.
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By Jim Wyckoff, contributing to Kitco News; email@example.com