Tuesday May 23, 2017 13:27
(Kitco News) - Gold prices were ending the U.S. day session moderately lower Tuesday, on some profit taking and a downside correction from recent gains. A rebound in the U.S. dollar index today also supported the precious metals markets bears. June Comex gold was last down $7.00 an ounce at $1,254.40. July Comex silver was last down $0.056 at $17.13 an ounce.
U.S. economic data, including a weaker-than-expected housing report, did not impact the precious metals markets significantly Tuesday. The economic report pace is heavy the rest of this week.
The world markets did not show significant reactions to the terror bombing attack at a concert in Manchester, England late Monday that killed nearly two dozen young people and injured scores. These major terror attacks that now occur a few times each year, unfortunately, are not surprising to the markets any more.
Major economic focal points of market watchers this week are the Federal Reserve’s FOMC minutes released on Wednesday afternoon and an OPEC meeting that begins Thursday.
The key outside markets on Tuesday saw the U.S. dollar index higher on a corrective bounce after hitting a six-month low Monday. The dollar index bears remain in firm near-term technical control. Meantime, Nymex crude oil futures prices were slightly up after hitting a four-week high Monday. News the U.S. government may sell off some of its crude oil stocks has put some pressure on the oil market. Crude oil prices have trended solidly higher recently, to suggest sideways, or sideways-to-higher, price action in the near term. Thursday’s OPEC meeting is expected to see the cartel continue its lower production quotas that were implemented last fall.
Technically, June gold futures prices closed nearer the session low today. The gold bulls still have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,226.80. First resistance is seen at last week’s high of $1,265.00 and then at $1,268.00. First support is seen at $1,250.00 and then at 1,245.00. Wyckoff's Market Rating: 5.5
July silver futures prices closed nearer the session low on some profit taking after hitting a four-week high early on today. The silver market bears have the overall near-term technical advantage. However, the bulls have momentum to suggest a market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the May low of $16.06. First resistance is seen at today’s high of $17.305 and then at $17.50. Next support is seen at $17.00 and then at this week’s low of $16.84. Wyckoff's Market Rating: 3.0.
July N.Y. copper closed up 5 points at 259.60 cents today. Prices closed nearer the session high today. The copper bears have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 246.25 cents. First resistance is seen at this week’s high of 260.45 cents and then at 262.50 cents. First support is seen at this week’s low of 256.60 cents and then at 255.00 cents. Wyckoff's Market Rating: 4.5.