Gold Ends Steady-Weak on Profit Taking, Chart Consolidation; FOMC Minutes On Deck

New York (July 8)  Gold prices ended the U.S. day session steady to weaker Tuesday. Trading has turned choppy and sideways amid some technical backing and filling on the charts, some profit taking by the shorter-term traders, and as fresh fundamental news is awaited. August Comex gold was last down $0.30 at $1,316.70 an ounce. Spot gold was last quoted down $4.30 at $1,316.25. December Comex silver last traded down $0.002 at $21.074 an ounce.

It has been a quieter trading affair in many markets early this week, amid a lack of major world economic news released so far. The focal point for U.S. traders this week is the FOMC meeting minutes from the Federal Reserve that are due out Wednesday afternoon. That data could give the markets a bit of a rattle, as markets have been very sensitive to Fed data releases in recent years.

Traders and investors are keeping a closer eye on the Middle East, as Israel has launched a military offensive on the Gaza strip. The Hamas group has retaliated with its own rocket launches into Israel.

The London P.M. gold fix was $1,323.00 versus the previous P.M. fixing of $1,318.25.

Technically, August gold futures prices closed nearer the session low Tuesday. Prices are trading choppy amid some chart consolidation. Gold market bulls have the slight overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,334.90. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at Tuesday’s high of $1,325.70 and then at $1,330.00. First support is seen at Tuesday’s low of $1,314.30 and then at last week’s low of $1,309.40. Wyckoff’s Market Rating: 5.5

December silver futures prices closed nearer the session low Tuesday and saw more mild profit taking after prices hit a 3.5-month high last week. The bulls still have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $21.86 an ounce.

Source:  KITCO