Gold Weaker, Pressured by Rebound in US Dollar
New York (Aug 4) Gold saw slight gains fade by afternoon trading and prices finished the U.S. day session modestly lower Tuesday. The U.S. dollar index staged a rally from lower price levels seen earlier in the day, and that helped to put some downside price pressure on gold and silver. December Comex gold was last down $3.40 at $1,085.90 an ounce. September Comex silver was last down $0.035 at $14.48 an ounce.
The market place is quieter this week as the summertime doldrums have set in for European and North American traders.
In overnight news, producer prices in the Euro zone were down 0.1% in June, month-on-month, and down 2.2% year-on-year. This is another clue that world deflationary pressures have not gone away and in fact are creeping back into discussions on world economic health matters. The European Central Bank would like to see an annual inflation rate of up 2.0%. There was a U.S. personal consumption report on Monday that did give a bit more upbeat view on the U.S. inflation front, showing that consumer price inflation is creeping up a bit, but still below where the Federal Reserve wants it to be.
India’s central bank kept its interest rates unchanged, it was announced Tuesday. No change in rates was expected for the third-largest economy in Asia. Australia’s central bank also held its interest rates steady, it was reported Tuesday.
While it’s a busy week for U.S. economic data, including Friday’s jobs report from the Labor Department, many traders and investors are focusing on family vacations in August, before the start of the new school year. European market activity slows way down during most of the month of August. The market place is likely to be generally quieter until after the U.S. Labor Day holiday in early September.
The London P.M. gold fix is $1,090.65 versus the previous A.M. fix of $1,092.60.
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 $1,094.40 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 and at another contract low close today. Silver bears have the solid overall near-term technical advantage. 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 $14.625 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 up 25 points at 234.85 cents today. Prices closed near mid-range on tepid short covering. 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.
Source: KitcoNews
