Gold Price Weaker Amid Lack of Bullish News in Marketplace, Lower Oil
San Francisco (July 25) Gold prices were ending the U.S. day session weaker Monday, but up from the daily low. No new bullish fundamental developments are allowing gold prices to languish in a sideways to lower drift. The recent rallies in world stock markets have also hurt the safe-haven metal, as such indicates there is not much risk aversion in the marketplace at present. August Comex gold was last down $3.40 an ounce at $1,320.00. September Comex silver was last down $0.014 at $19.675 an ounce.
The key “outside markets” on Monday saw the U.S. dollar index weaker and Nymex crude oil prices lower. Nymex crude oil futures hit a three-month low Monday are hovering just above $43.00 a barrel. If oil prices continue to trend lower, such would be a significantly bearish factor for the entire raw commodity sector, including the precious metals.
The focal point of the marketplace this week will be the U.S. Federal Reserve’s Open Market Committee (FOMC) that meets Tuesday and Wednesday, and the Bank of Japan monetary policy meeting that takes place Thursday and Friday. No change is expected in U.S. monetary policy this week, but it is expected the BOJ will announce a new monetary policy stimulus package.
U.S. economic data Monday was light and included the Texas manufacturing outlook survey. However, the report pace will pick up significantly Tuesday with a big batch of data due.
Technically, August gold futures prices closed nearer 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 $1,325.00 and then at $1,334.00. First support is seen at last week’s low of $1,310.70 and then at $1,300.00. Wyckoff’s Market Rating: 6.5
September silver futures prices closed nearer the session high 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. The next downside price breakout objective for the bears is closing prices below solid support at $19.00.