Gold Price Down On Profit Taking, Risk-On Day, But Finishes Up from Daily Lows

New York (July 14)  Gold prices ended the U.S. day session down on profit taking from recent gains and amid a “risk-on” day in the marketplace. The yellow metal hit a new low for the week in early U.S. trading, but then rebounded off its lows on some bargain-hunting buying interest. August Comex gold was last down $11.70 an ounce at $1,332.00. September Comex silver was last down $0.093 at $20.32 an ounce.

Global stock markets were again mostly firmer Thursday as this week has seen a marked increase in investor risk appetite, amid ideas the world’s major central banks will continue to pump money into their economies. The U.S. S&P 500 stock index hit another record high Thursday.

The Bank of England held its regular monetary policy meeting Thursday and left interest rates unchanged, which was a bit surprising to many. Many expected the BOE to cut its main interest rate for the first rate cut since 2009.  World stock markets did weaken just a bit after the BOE announcement. Gold also saw some added selling pressure after the BOE news.

The key “outside markets” on Thursday saw crude oil prices firmer on a short-covering bounce from recent selling pressure. The U.S. dollar index was weaker today as trading has turned choppy and sideways in the USDX. The bullish posture of these two outside markets on this day did not give much help to the gold and silver markets.

Technically, August gold futures closed near mid-range today. The gold bulls still have the firm overall near-term technical advantage but have faded this week. Prices are still in a six-week-old uptrend on the daily bar chart but now just barely. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the July high of $1,377.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00.

September silver futures prices closed near mid-range on profit taking after closing at a two-year high close Wednesday. The silver market bulls still have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $21.22 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $19.00.

Source: KitcoNews