P.M. Kitco Metals Roundup: Comex Gold Ends Slightly Higher; Central Bank Meetings, U.S. Jobs Report Loom, Kitco
Monday July 30 2012 2:14 PM
Comex gold futures prices ended the U.S. day session with slight gains in very quiet, summertime trading. Some key central bank meetings and a U.S. jobs report are lurking just around the corner, and that also has the market place tentative. December gold last traded up $2.40 at $1,625.10 an ounce. Spot gold was last quoted down $1.50 an ounce at $1,623.10. September Comex silver last traded up $0.602 at $28.10 an ounce.
(Note: I was on vacation last week, Jeeping and hiking in the Telluride, Colorado region. A great time was had by my wife and me. However, I really did miss writing my daily Kitco reports for you, my valued reader. I know I have a great job when I don’t at all mind getting back to work and producing daily analysis and perspective for you.—Jim)
Focus of the market place this week is on the two-day FOMC meeting of the U.S. Federal Reserve, which starts Tuesday and ends early Wednesday afternoon. Also, the European Central Bank’s policy meeting and press conference are on Thursday. The Bank of England also meets to discuss its monetary policy, with results on Thursday. Market watchers will be closely scrutinizing these central bank meetings for any fresh clues on the implementation of quantitative easing of monetary policies. Such would be at least initially bullish for many markets, including the precious metals.
Then on Friday comes the all-important U.S. jobs report, which could be a big market-moving event.
In overnight news, it was reported Jean-Claude Juncker, the head of the Euro zone finance ministers, said the EU and ECB will soon take steps to eliminate the potential for a spreading debt contagion in the European Union.
With the month of August just around the corner, much of Europe is set to go on holiday, which means the market place will have fewer players the next few weeks. Such could make for generally quite, choppy and range-bound trading for many markets, including the precious metals.
The U.S. dollar index traded modestly higher Monday, while crude oil prices traded modestly lower. These two key “outside markets” were in a slightly negative daily posture for the precious metals Monday.
The London P.M. gold fix is $1,617.75 versus the previous London P.M. fixing of $1,618.25.
Technically, December gold futures prices closed nearer the session high Monday. The gold market bulls have gained some upside near-term technical momentum recently as prices last Friday hit a fresh five-week high and closed at a technically bullish weekly high close. The bulls have gained the slight near-term technical advantage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the June high of $1,646.40. Bears' next near-term downside price objective is closing prices below psychological support at $1,600.00. First resistance is seen at Monday’s high of $1,630.00 and then at last week’s high of $1,633.30. First support is seen at Monday’s low of $1,617.60 and then at Friday’s low of $1,604.90. Wyckoff’s Market Rating: 5.5
September silver futures prices closed nearer the session high and hit a fresh four-week high Monday. Silver bulls did gain a bit of fresh upside near-term technical momentum today. Silver bears do still have the slight overall near-term technical advantage, however. Prices are still in a five-month-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $28.445 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $26.575. First resistance is seen at Monday’s high of $28.11 and then at $28.445. Next support is seen at Monday’s low of $27.515 and then at $27.21. Wyckoff's Market Rating: 4.5.
September N.Y. copper closed down 80 points 341.80 cents Monday. Prices closed near mid-range. Copper bulls and bears are presently on a near-term level technical playing field. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the July high of 355.65 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of 333.20 cents. First resistance is seen at Monday’s high of 345.55 cents and then at 347.50 cents. First support is seen at Monday’s low of 340.25 cents and then at Friday’s low of 337.90 cents. Wyckoff's Market Rating: 5.0.
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By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org