FB: Comex Gold Weaker in Quiet Trading; Summer Doldrums Setting In
Comex gold futures prices are trading modestly lower in early U.S. dealings Friday. The key outside markets are in a bearish posture for the precious metals early Friday, as the U.S. dollar index is higher and crude oil prices are lower. Trading in gold and silver remains choppy and sideways on the daily charts. August gold last traded down $4.30 at $1,576.10 an ounce. Spot gold was last quoted down $4.90 an ounce at $1,577.25. September Comex silver last traded down $0.342 at $26.885 an ounce.
It’s a quiet day on the business news front Friday, as the summer doldrums are setting in. Traders and investors continue to debate whether QE3 will be implemented, and if so when. Thursday’s batch of weak U.S. economic data bolstered the case that a fresh quantitative easing move by the Federal Reserve will occur soon.
Attention of the market place has turned to the Middle East late this week, following recent developments in that volatile region. However, it won’t be long until the European Union and its sovereign debt crisis are back on the front burner of the market place.
The London A.M. gold fix is $1,583.00 versus the previous London P.M. fixing of $1,584.00.
There is no major U.S. economic data due for release Friday.
Technically, there is not much new. August gold futures bulls and bears are still fighting for near-term technical control, with neither gaining much of an edge, as seen by the recent choppy and sideways trading range on the daily bar chart. Bulls and bears are presently on a level near-term technical playing field. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the July high of $1,625.70. Bears’ next near-term downside price objective is closing prices below solid technical support at $1,547.60. First resistance is seen at the overnight high of $1,586.30 and then at $1,600.00. First support is seen at this week’s low of $1,567.20 and then at the July low of $1.554.40.
September silver futures bears still have the overall near-term technical advantage as trading has also been choppy recently. Prices are in a 4.5-month-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $28.445 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the June low of $26.105. First resistance is seen at the overnight high of $27.295 and then at this week’s high of $27.595. Next support is seen at this week’s low of $26.72 and then at the July low of $26.425.
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By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
