Gold prices concluded the U.S. day session almost at an unchanged level last week but was well up from its daily average low. Several downbeat U.S. economic data gave the gold market a breather from lower levels seen in overnight trading. The August Comex gold was last seen at $0.10 at $1,321.20 per ounce. Spot gold was last quoted at $1.30 at $1,320.75 with the December Comex Silver last seen traded at $0.077 at $21.227 an ounce.
The first quarter U.S. GDP report was released last week and revealed a drop of 2.9 % which was the biggest quarterly decline in years. Moreover, U.S. durable goods orders diminished 1.0 % last May respectively. This news falls into the territory of the U.S. monetary policy doves, who want to keep quantitative easing in place and which also could indicate inflationary price pressures that would benefit hard assets like gold and silver.
There were no foremost developments on the world market place overnight and with the civil war in Iraq still under shaky developments, some risk aversion in the market place is still very encouraging for gold and U.S. Treasury prices. However, the U.S. stock indexes are now hovering not far below record of multi-year highs which is indicative of risk aversion which is presently not that foreseeable at present.
The London P.M. gold fix was at $1,316,75 as against the previous A.M. fixing of $1,312.00, technically the August gold futures prices were closed much nearer to the session high last week after trading lower earlier on. Gold market bulls have the general near-term advantage with prices in a three-week-old uptrend on the daily bar chart, the gold bulls’ next upside near-term price breakout goal is to manufacture a close above solid technical resistance at the previous April high of $1,331.00.
Bears’ next-term downside breakout price goal is closing prices below solid technical support at the $1,300.00 level with the first resistance seen as high as $1,326.60 and then at the $1,331.00. First support is seen at the $1,314.5 followed by a low of $1,305.40.
The December silver futures prices were able to close at a nearer session high last week hitting a 3.5 month high. The bulls have the overall near-term leverage according to prices in a three-week old uptrend on daily bar chart results.
Silver bulls’ next upside price breakout goal is to be able to close prices above solid technical resistance at the March high of $21.86 per ounce. The next drawback price breakout objective for the bears is to close prices below solid technical support at $20.00. First resistance was seen last week’s high of $21.50 with next support at the $21.00 level which was later followed at a low of $20.82 correspondingly.
The December N.Y. copper was able to close 175 points at 315 cents last week with prices closed nearer the session high and was able to hit at an almost four-month high. Copper bulls have the overall near-term technical leverage with their next upside breakout goal is thrusting and closing prices above solid technical resistance at the March high of 321.4 cents. The next downside price breakout goal for the bears is to close prices below solid technical support at 307.40 cents.
Finally, the next downside price goal for the bears is closing prices way below their solid technical support at 307.5 cents. First resistance was seen last week at 316.35 cents and then at 317.50 cents. First support is likewise seen last week with a low of 312.25 cents and then this week’s low of 310.30 cents with the Wyckoff’s Market Rating of 6.0.