Monday May 23, 2016 13:36
(Kitco News) - Gold prices ended the U.S. day session slightly down but up from the daily bottom that saw prices hit a three-week low early on. The gold bulls have faded a bit recently and need a fresh dose of bullish fundamental news to jolt the market out of its recent downward bias. June Comex gold futures were last down $1.80 an ounce at $1,251.10. July Comex silver was last down $0.097 at $16.44 an ounce.
World stock markets were mixed Monday, following a big weekend meeting of world finance and central bank officials that ended with no major initiatives. U.S. officials at the meeting did express their concern about the recent appreciation of the Japanese yen. U.S. stock indexes were slightly up in afternoon trading in New York.
In overnight news, the Euro zone’s Markit composite purchasing managers’ index (PMI) came in at 52.9 in May from 53.0 in April. The reading was slightly below market expectations. A number above 50.0 suggests growth.
Meantime, the increasing likelihood of a U.S. interest rate rise coming in June continues reverberate in the marketplace. Such has been a negative for the precious metals markets.
The U.S. dollar index has rallied following last week’s release of hawkish FOMC minutes.
The key “outside markets” on Monday saw the U.S. dollar index slightly lower and Nymex crude oil prices trading weaker.
Technically, June gold futures prices closed near mid-range today. The gold still bulls have the overall near-term technical advantage but have faded. Prices are in a three-week-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,290.40. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at today’s high of $1,256.80 and then at $1,262.30. First support is seen at today’s low of $1,243.50 and then at $1,240.00. Wyckoff’s Market Rating: 6.5
July silver futures prices closed near mid-range and hit a four-week low today. The silver market bulls have the overall near-term technical advantage, but have faded badly as a three-week-old downtrend is in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $16.75 and then at $17.00. Next support is seen at today’s low of $16.325 and then at $16.20. Wyckoff's Market Rating: 6.0.
July N.Y. copper closed down 25 points at 205.30 cents today. Prices closed near mid-range today. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 200.00 cents. First resistance is seen at today’s high of 206.40 cents and then at 210.00 cents. First support is seen at last week’s low of 203.80 cents and then at 202.00 cents. Wyckoff's Market Rating: 2.0.
By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org