Gold Price Rebounds From Early 3-Week Low On Bargain Hunting, Short Covering

New York (July 21)  Gold prices were ending the U.S. day session higher and near the daily high, on a corrective rebound from selling pressure that pushed prices to a three-week low overnight. Short covering in the futures market and bargain hunting in the cash market were featured. A weaker U.S. dollar index on this day also worked in favor of the precious metals bulls. August Comex gold was last up $12.90 an ounce at $1,332.20. September Comex silver was last up $0.187 at $19.80 an ounce.

Today’s meeting of the European Central Bank saw the ECB hold interest rates steady, as expected, and did not announce new monetary policy stimulus measures. At his press conference, ECB President Mario Draghi did not lay out significant plans for future stimulus coming from the ECB, as some thought he might. World stock markets have been buoyed this summer on ideas the major central banks of the world will continue their very easy money policies—especially after the Brexit vote in late June.

The Japanese yen rallied against the U.S. dollar Thursday after Bank of Japan Governor Kuroda said he is not in favor of “helicopter money,” implying he does not want extreme quantitative easing measures coming from the BOJ.

The key “outside markets” on Thursday saw the U.S. dollar index lower after hitting a four-month high Wednesday. Nymex crude oil prices were also lower and hovering just below $45.00 a barrel. If crude oil continues to trend lower, that will be a significant bearish weight on all the raw commodity markets.

Technically, August gold futures prices closed near the session high. The gold bulls still have the overall near-term technical advantage, but have faded recently. Prices have been trending lower for three weeks. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at Wednesday’s high of $1,338.80 and then at $1,348.00. First support is seen at $1,320.00 and then at today’s low of $1,310.70. Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

September silver futures prices closed nearer the session high today on short covering and bargain hunting after hitting a two-week low early on today. The silver market bulls still have the overall near-term technical advantage but have faded recently. Prices have been trending lower for three weeks. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $21.22 an ounce.

Source: KitcoNews