Gold Ends Weaker On Mild Profit Taking, Chart Consolidation

New York (July 7)  Gold futures prices ended a quieter U.S. day session modestly lower Monday. Some light profit taking and “backing and filling” on the charts were featured. The summertime doldrums may be setting in for the market place. August Comex gold was last down $2.60 at $1,318.00 an ounce. Spot gold was last quoted down $3.50 at $1,317.50. December Comex silver last traded down $0.123 at $21.076 an ounce.

The focal point for U.S. traders this week is the FOMC meeting minutes that are due out Wednesday afternoon. Recent history shows Federal Reserve data is very important for the market place and many times markets-moving.

European stock markets were weaker Monday, partly due to some weaker-than-expected German industrial production data that showed the sharpest monthly decline in two years. The reading was down 1.8% in May, year-on-year. Germany is the largest economy within the European Union.

U.S. economic data due for release Monday was light and included the employment trends index.

The London P.M. gold fix was $1,313.00 versus the previous P.M. fixing of $1,313.25.

Technically, August gold futures prices closed nearer the session high Monday. Prices are now trading choppy amid some chart consolidation and as traders await fresh fundamental inputs. Gold market bulls still have the slight overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,334.90. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at Monday’s high of $1,321.70 and then at $1,325.00. First support is seen at Monday’s low of $1,312.10 and then at last week’s low of $1,309.40. Wyckoff’s Market Rating: 5.5

Source: KITCO