Gold Up Amid Uncertainty As Important Events Lie Just Ahead

(Kitco News) - Gold prices aresolidly higher and hit a six-week high in early U.S. trading Tuesday. Pricesare now within easy striking distance of the key $1,300.00 mark. Silver pricesare at a five-week high and are in a near-term uptrend. August Comex gold waslast up $10.70 an ounce at $1,293.30. JulyComex silver was last up $0.084 at$17.665 an ounce.

There is a bitof risk aversion in the marketplace early this week, ahead of potentiallymarkets-moving happenings later this week. Such is benefitting safe-haven gold,as well as U.S. Treasuries and the Japanese yen. On Thursday there are generalelections in the U.K., a European Central Bank meeting, and former FBI directorJames Comey testifies to the U.S. Congress. Next week, the Federal Reserve'sFOMC meets, at which time it is expected the Fed will slightly raise U.S.interest rates.

A depreciatingU.S. dollar on the world foreign exchange markets is also working in favor ofthe precious metals market bulls. The U.S. dollar index is slightly lower andhit a six-month low overnight. The greenback bears are in firm near-termtechnical control as dollar index prices are in a three-month-old downtrend.

The other"outside market" sees Nymex crude oil futures prices slightly lower in earlyU.S. trading Tuesday. The oil market bears have the firm overall near-termtechnical advantage and prices are now well below $50.00 a barrel.

U.S. economicdata due for release Tuesday includes the weekly Goldman Sachs and JohnsonRedbook retail sales reports, the NFIB small business index, and the IDB/TIPPeconomic optimism index.

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

Technically, Augustgold futures bulls have the firm overall near-term technical advantage as prices are in an uptrend onthe daily bar chart. Bulls' next upside near-term price breakout objective isto produce a close above solid technical resistance at $1,300.00. Bears' nextnear-term downside price breakout objective is closing prices below solidtechnical support at $1,250.00. First resistance is seen at the overnight highof $1,296.40 and then at $1,300.00. First support is seen at this week's low of$1,280.20 and then at $1,275.00. Wyckoff's Market Rating: 7.0

July silver priceshit a five-week high overnight. Bulls have the overall near-term technicaladvantage. The next upsideprice breakout objective is closing futures prices above solid technicalresistance at $18.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at $16.75. First resistance isseen at $17.75 and then at $18.00. Next support is seen at this week's low of $17.495and then at $17.25. Wyckoff's Market Rating: 6.0.

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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