Gold Ends Slightly Lower; Increased Investor Risk Appetite and Stronger U.S. Dollar Bearish

New York (Aug 19)  Gold prices ended the U.S. day session slightly lower Tuesday. Some upbeat U.S. housing data helped to stoke better investor risk appetite to fuel the stock market bulls. The other bearish factor for gold Tuesday was the U.S. dollar index rallying to an 11-month high. Losses were limited, however, as smoldering geopolitical hotspots are still somewhat supportive for safe-haven gold. December Comex gold was last down $2.10 at $1,297.20 an ounce. Spot gold was last quoted down $1.10 at $1,296.50. December Comex silver last traded down $0.215 at $19.485 an ounce.

Traders and investors are awaiting this week’s annual Kansas City Federal Reserve meeting in Jackson Hole, Wyoming, that begins on Thursday. The confab of world central bankers has in the past yielded important U.S. monetary policy speeches and clues to the direction of monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are scheduled to speak in Jackson Hole on Friday. Before the Jackson Hole event comes the Federal Reserve’s FOMC minutes on Wednesday afternoon, which as usual will be closely scrutinized.

The London P.M. gold fix was $1,296.50 versus the previous A.M. fixing of $1,300.25.

Technically, December gold futures prices closed nearer the session low Tuesday. Gold bulls and bears are still on a level overall near-term technical playing field but the bulls are fading. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,324.30. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the August low of $1,281.00. First resistance is seen at this week’s high of $1,304.90 and then at $1,310.00. First support is seen at last week’s low of $1,293.00 and then at $1,289.00. Wyckoff’s Market Rating: 5.0

December silver futures prices closed nearer the session low and hit a two-month low again Tuesday. Prices also scored a bearish “outside day” down on the daily bar chart. Silver prices are in a six-week-old downtrend on the daily bar chart. The bears have the firm near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.00 an ounce.

Source: KitcoNews