Gold Sees Some Profit Taking Ahead Of Big Day Thursday

(Kitco News) - Gold prices ended the U.S. day session modestly lower on a normal downside technical correction and some profit taking from the shorter-term traders, after hitting a seven-week high Tuesday. A big drop in crude oil prices Wednesday also weighed on the precious metals. Major news events occur Thursday, which are likely to move the metals markets. August Comex gold was last down $4.60 an ounce at $1,292.90. July Comex silver was last down $0.095 at $17.615 an ounce.

Terror attacksin Iran Wednesday, including on its parliament, did not had a significantimpact on the world marketplace. ISIS has claimed responsibility for theattacks.

Important andlikely markets-moving events are on tap Thursday, including general electionsin the U.K., a European Central Bank meeting, and former FBI director JamesComey testifying to the U.S. Congress. That should make for an active andpotentially volatile day in many markets. Next week, the Federal Reserve's FOMCmeets, at which time it is expected the Fed will slightly raise U.S. interestrates.

There is also abit of uneasiness in the marketplace about the Trump administration thatcontinues to be embroiled in controversy, particularly regarding alleged tiesto the Trump team and the Russian government involving the presidentialelection in 2016. The Wall Street Journal on Tuesday ran a scathing editorialon Trump's leadership style.

The key outside markets on Wednesday saw the U.S. dollar index is higher overnight, but those gains were erased during the U.S. day session and prices were near steady Wednesday afternoon. The index hit a six-month low Tuesday. The greenback bears are still in firm near-term technical control as dollar index prices are in a three-month-old downtrend. The other "outside market" on Wednesday saw Nymex crude oil futures prices sharply lower and hitting a four-week low. The oil market bears have the firm overall near-term technical advantage as prices are well below $50.00 a barrel.

Technically, August gold futures prices closed near mid-range today. The gold bulls still have the firm overall near-term technical advantage. Prices are in a steep four-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at $1,300.00 and then at $1,310.00. First support is seen at today's low of $1,290.40 and then at this week's low of 1,280.20. Wyckoff's Market Rating: 7.0

July silver futures prices closed near mid-range and saw mild profit taking after hitting a six-week high on Tuesday. The silver market bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.75. First resistance is seen at this week's high of $17.745 and then at $18.00. Next support is seen at this week's low of $17.495 and then at $17.25. Wyckoff's Market Rating: 6.0.

July N.Y. copper closed up 60 points at 255.35 cents today. Prices closed nearer the session high today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 247.25 cents. First resistance is seen at this week's high of 257.55 cents and then at 259.60 cents. First support is seen at this week's low of 251.55 cents and then at 250.00 cents. Wyckoff's Market Rating: 5.0.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities,securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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