Gold Slips A Bit On Bearish Outside Markets

Published: Aug 09, 2017 13:24 (GMT+8)

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Gold prices were ending a choppy U.S. day session slightly lower and in the middle of a wide daily trading range Tuesday.

Jim Wyckoff

Tuesday August 08, 2017 13:10

(Kitco News) - Gold prices were ending a choppy U.S. day session slightly lower and in the middle of a wide daily trading range Tuesday. The light selling pressure came as the outside markets turned bearish on the day in morning U.S. trading. The U.S. dollar index scored decent gains and crude oil prices were weaker. Losses were limited by some safe-haven demand that cropped up amid an uptick in U.S.-North Korea tensions. December Comex gold was last down $3.00 an ounce at $1,261.80. September Comex silver was last up $0.134 at $16.385 an ounce.

North Korea has threatened to use its nuclear weapons against the U.S. after the United Nations slapped more sanctions on the rogue nation. This matter won’t just go away and will likely get worse before it gets better. Such is likely to continue to be an underlying bullish element for the gold market.

The U.S. dollar index was weaker in early U.S. trading Tuesday, before rebounding in morning action. Still, the index remains in a price downtrend that has been in place all year long, and the bears still possess the strong near-term technical advantage.

Nymex crude oil futures were slightly down and traded just above $49.00 a barrel in early afternoon Tuesday. Reports overnight said OPEC leader Saudi Arabia is planning to reduce its oil exports to Asia. OPEC members are meeting this week in Abu Dhabi.

Technically, December gold futures bulls still have the overall near-term technical advantage. Bulls’ next upside technical objective is pushing prices above chart resistance at last week’s high of $1,280.30. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,240.00. First resistance is seen at today’s high of $1,271.00 and then at $1,275.00. First support is seen at today’s low of $1,257.10 and then at $1,250.00. Wyckoff’s Market Rating: 6.0

September silver bears have the overall near-term technical advantage. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 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 $16.50 and then at $16.75. Next support is seen at today’s low of $16.205 and then at this week’s low of $16.095. Wyckoff's Market Rating: 4.0.

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