Gold Price Again Pressured by Bearish Charts, Outside Markets
San Francisco (Aug 5) Gold prices ended the U.S. day session moderately lower Wednesday in choppy trading. The key outside markets were once again bearish for the precious metals today, as the U.S. dollar index was firmer and crude oil prices were lower. The dollar index hit a 3.5-month high today and crude oil prices are hovering near a four-month low. A firmly bearish technical chart posture for the precious metals is also keeping buyers leery.
December Comex gold was last down $5.30 at $1,085.50 an ounce. September Comex silver was last down $0.002 at $14.555 an ounce.
Gold moved up from its overnight lows just after the open of U.S. trading when the July ADP jobs report showed a rise of 185,000, which was a slight miss to the downside of market expectations. The ADP report is a precursor to Friday’s more important U.S. jobs report for July from the Labor Department. The key non-farm payrolls number in Friday’s report is expected to be up 215,000. Friday’s jobs report and the one in September will be extra important to the market place, as the Fed weighs whether to raise interest rates at its September FOMC meeting.
Gold prices once again drifted back lower at mid-morning when a stronger-than-expected U.S. ISM non-manufacturing report came in stronger than expected.
A feature in the market place this week is the resurgent U.S. dollar index. The greenback got an added boost Tuesday when reports said Atlanta Fed President Dennis Lockhart, a voting member of the Federal Open Market Committee, told the Wall Street Journal the Fed is ready to raise U.S. interest rates in September. The Fed official’s comments also helped to pressure the gold market and U.S. Treasuries.
Reports continue to surface that with gold prices recently hitting a 5.5-year low, demand for coins and physical gold from individual investors has significantly increased around the world.
The London P.M. gold fix is $1,085.10 versus the previous A.M. fix of $1,086.50.
Technically, December gold futures prices closed near mid-range. Gold bears have the solid overall near-term technical advantage, even though prices have been trading sideways for two weeks after hitting a 5.5-year low in late July. Prices are in a 10-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,110.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at the July low of $1,073.70. First resistance is seen at today’s high of $1,091.70 and then at $1,100.00. First support is seen at last week’s low of $1,079.20 and then at $1,073.70. Wyckoff’s Market Rating: 1.0
September silver futures prices closed near mid-range today. Silver bears have the solid overall near-term technical advantage as prices hover near the recent contract and eight-month low. Prices are in a 10-week-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $15.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.00. First resistance is seen at today’s high of $14.675 and then at this week’s high of $14.765. Next support is seen at the July low of $14.33 and then at $14.25. Wyckoff's Market Rating: 1.0.
September N.Y. copper closed down 150 points at 234.70 cents today. Prices closed near mid-range. The key “outside markets” were in a bearish posture for copper today as the U.S. dollar index was firmer and crude oil prices were weaker. Prices Monday hit a contract and six-year low. Copper bears have the solid near-term technical advantage. Prices are in a 10-week-old downtrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 250.00 cents.
Source: KitcoNews
