Gold Slightly Down Ahead Of Busy U.S. Data Day

Gold Slightly Down Ahead Of Busy U.S. Data Day

CONTRIBUTOR-FORBES

(Kitco News) - Gold is slightly lower in early U.S. trading Tuesday, on some more mild profit taking from recent strong gains that pushed prices to a six-week high on Monday. Bulls are still feeling comfortable as their market is in a solid uptrend on the daily charts. December Comex gold was last down $1.10 an ounce at $1,272.30. September Comex silver was last down $0.076 at $16.71 an ounce.

It’s a busy day for U.S. economic data Tuesday, including the weekly Johnson Redbook and Goldman Sachs retail sales reports, personal income and outlays, the U.S. manufacturing PMI, construction spending, the ISM manufacturing report on business, the global manufacturing PMI, and domestic auto industry sales. The key report of the week will be Friday’s U.S. jobs report for July from the Labor Department. The non-farm payrolls number of that report is expected to be up 180,000.

World stock markets were mostly higher overnight, boosted in part by upbeat corporate earnings reports and upturns in several raw commodity markets. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The fact that gold prices have performed well the past couple weeks, in the face of record highs set in the U.S. stock indexes, bodes very well for the gold market bulls as the historically difficult months for the stock market approach—September and October. If money does start to flow out of the already-long-in-the-tooth stock market bull run, then the competing asset class safe-haven gold will benefit.

The important “outside markets” early Tuesday find the U.S. dollar index slightly higher on a tepid corrective bounce from recent strong downside action that saw the index hit a 13-month low Monday. Meantime, Nymex crude oil futures are near steady and trading just above $50.00 a barrel. Oil prices hit a two-month high overnight.

Technically, December gold futures bulls have the firm overall near-term technical advantage amid a near-term price uptrend. Bulls’ next upside technical objective is pushing prices above chart resistance at the $1,300.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,249.40. First resistance is seen at Monday’s high of $1,277.30 and then at $1,280.00. First support is seen at $1,270.00 and then at $1,265.00. Wyckoff’s Market Rating: 6.5

bullish monthly high close on Monday. Bulls and bears are on a level overall near-term technical playing field. However, silver prices have been trending higher for three weeks. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.25. Next support is seen at $16.50 and then at $16.225. Wyckoff's