Comex gold futures prices ended the U.S. day session solidly lower and near the daily low Tuesday, as selling pressure accelerated in afternoon trading. A higher U.S. dollar index and solidly lower crude oil prices were bearish âoutside marketâ forces pressuring the precious metals Tuesday. The market place is awaiting Wednesday afternoonâs FOMC meeting minutes. Trading in gold has turned choppy and sideways recently. The âsummer doldrumsâ may be setting in for the precious metals. August gold last traded down $20.00 at $1,569.10 an ounce. Spot gold was last quoted down $17.70 an ounce at $1,570.00. September Comex silver last traded down $0.594 at $26.84 an ounce.
The market place is now awaiting Wednesday afternoonâs FOMC minutes from the Federal Reserve for any clues on U.S. monetary policy actions upcoming. Gold and silver bulls want to see some fresh hints the Fed will implement further monetary policy easing measures soon.
In overnight news, Chinese economic data showed a trade surplus for that nation in June, which indicates slowing demand coming out of the second-largest economy in the world. This helped to put Asian stock markets under pressure Tuesday.
Meantime, Eurozone finance ministers are meeting early this week to try to figure out how to implement the recently agreed upon measures to stabilize the EU banking and financial system. They have decided to give Spain an extra year to get its financial house in order. European stocks were trading not far from unchanged. Spanish bond yields are still hovering around 7%.
In other overnight news, reports said outflow of money from Indian Exchange Traded Funds (ETFs) hit a record high in June. Weak physical demand and poor investment demand were cited as the major reasons.
The U.S. dollar index was higher Tuesday. The greenback bulls have upside near-term technical momentum on their side. Meantime, Nymex crude oil futures prices were solidly lower. There are still some early clues the crude oil market has put in a bottom.
The London P.M. gold fix is $1,595.25 versus the previous London P.M. fixing of $1,585.00.
Technically, August gold futures prices closed near the session low Tuesday and scored a bearish âoutside dayâ down on the daily bar chart today. The gold market bulls and bears are still on a level near-term technical playing field amid choppy trading conditions. The gold bullsâ next upside price breakout objective is to produce a close above solid technical resistance at the June high of $1,642.40. Bears\' next near-term downside price objective is closing prices below solid technical support at $1,547.60. First resistance is seen at $1,585.00 and then at Mondayâs high of $1,593.10. First support is seen at $1,565.00 and then at $1,556.40. Wyckoffâs Market Rating: 5.0
September silver futures prices closed near the session low Tuesday and scored a bearish âoutside dayâ down on the daily bar chart. Silver bears have the overall near-term technical advantage but trading has been choppy recently. Prices are still in a four-month-old downtrend on the daily bar chart. Bullsâ next upside price breakout objective is closing prices above solid technical resistance at last weekâs high of $28.445 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of $26.105. First resistance is seen at $27.00 and then at Tuesdayâs high of $27.58. Next support is seen at $26.50 and then at $26.105. Wyckoff\'s Market Rating: 3.0.
September N.Y. copper closed down 465 points 338.50 cents Tuesday. Prices closed near the session low today. The key âoutside marketsâ were bearish for copper as the U.S. dollar index was higher and crude oil prices were lower. 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 last weekâs high of 355.65 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of 325.00 cents. First resistance is seen at 340.00 cents and then at Tuesdayâs high of 344.00 cents. First support is seen at 337.50 cents and then at 335.00 cents. Wyckoff\'s Market Rating: 5.0.
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By Jim Wyckoff, contributing to Kitco News