COM: Comex Gold lower as Investor risk appetite rises
By Jim Wyckoff of Kitco News www.kitco.com
Comex gold futures Monday morning are trading slightly lower on some more profit-taking pressure from recent gains, on more price consolidation and as worldwide investor risk appetite is on the rise to start the new trading week. August Comex gold last traded down $1.80 an ounce at $1,228.40. Spot gold last traded steady at $1,228.00.
U.S. and world stock indexes are posting price gains Monday as the Euro currency is solidly higher in early trading. The U.S. dollar index is trading solidly lower as investor risk appetite is on the rise as no major fresh unsettling news occurred on the world economic/financial or geopolitical stage during the weekend. That is somewhat limiting the safe-haven flows of investor money into the gold market.
However, selling interest in gold continues to be limited by the threat of a new flare-up of the European Union's debt crisis. Recent strong investor demand for physical gold and gold exchange traded funds (ETFs) is also limiting the downside pressure in gold.
Reports overnight said demand for gold jewelry and scrap gold has leveled off recently. One wire service report quoted a bullion official from India as saying India's gold imports are likely to decline 50% in June due to higher gold market prices.
The London A.M. gold fix was $1,229.50 versus the previous P.M. fixing of $1,220.00.
Technically, Comex gold futures bulls still have the solid overall near-term and longer-term technical advantage. No chart damage has been inflicted with the latest downside price correction. There are still no early chart clues that a market top is close at hand. August gold prices are in a four-month-old uptrend on the daily bar chart. A close in August gold below the last "reaction low" low on the daily bar chart, at the June low of $1,198.10, would negate the aforementioned uptrend on the daily chart, produce some serious near-term chart damage that would be one early technical clue that a near-term market top is in place, or at least a significant downside correction is at hand.
For August gold, shorter-term technical resistance is seen at the overnight high of $1,235.90 and then at $1,242.60. Buy stops likely reside just above those levels. Sell stops likely reside just below chart support at $1,220.00 and then at $1,216.20. Today's key near-term Fibonacci pivot level for August gold: $1,226.00.
Comex silver futures are trading higher Monday morning. July silver last traded up 16.9 cents at $18.40 an ounce.
Silver has seen some near-term technical damage repaired recently, but the bulls have more work to do to re-establish a near-term price uptrend. It would take a push in July silver above the June high of $18.735 to fully repair the recent chart damage and provide the bulls with fresh upside technical momentum.
July silver finds shorter-term technical resistance at last week's and the overnight high of $18.535 and then at $18.735. Buy stops likely reside just above those levels. Shorter-term technical support for July silver is located at the overnight low of $18.25 and then at $18.00. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for July silver futures is located at $18.16.
