Gold Price Hits A Speed Bump After Hitting A 4-Week High
New York (July 24) Gold prices were ending the U.S. day session near steady Monday, after hitting a four-week high earlier in the day. The yellow metal saw a normal pause amid a fledgling uptrend in place on the daily bar chart. August Comex gold was last down $0.20 an ounce at $1,254.70. September Comex silver was last down $0.007 at $16.45 an ounce.
Focus of the world marketplace is on the Federal Reserve’s Open Market Committee meeting (FOMC) that begins Tuesday morning and ends early Wednesday afternoon with a statement. No changes in U.S. monetary policy are expected at this meeting. However, the tone of the FOMC statement will be important for markets. Just recently Federal Reserve Chair Janet Yellen has sounded a more dovish tone on U.S. monetary policy.
The key “outside markets” on Monday saw the U.S. dollar index slightly higher on a tepid corrective bounce after hitting a 13-month low in overnight trading. The greenback has been declining all year long, which is now working to the benefit of the precious metals market bulls.
Meantime, Nymex crude oil futures were firmer and trading just above $46.00 a barrel. OPEC oil ministers are meeting in St. Petersburg, Russia. Today’s headlines suggested the cartel wants to adhere to its current production quotas and crack down on countries that cheat on their allotted quota. No official statement from OPEC has been seen yet.
Technically, August gold futures prices closed near mid-range today. The gold bulls have the slight overall near-term technical advantage. Prices are in a steep two-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,270.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,220.00. First resistance is seen at today’s high of $1,259.00 and then at $1,265.00. First support is seen at today’s low of $1,252.00 and then at Friday’s low of $1,242.80. Wyckoff's Market Rating: 5.5
September silver futures prices closed near mid-range and hit a three-week high today. While the silver bears still have the overall near-term technical advantage recent price action suggests a near-term market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce.
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