A.M. Kitco Metals Roundup: Gold Weaker On Position Evening As Key Data Points Awaited

Comex gold futures prices are modestly lower in early U.S. trading Tuesday, pressured by some position evening and technical chart consolidation ahead of some big economic data due out in the next few days that will most certainly be markets-moving. December gold was last down $5.50 at $1,324.10 an ounce. Spot gold was last quoted down $3.70 at $1,324.00. September Comex silver last traded down $0.214 at $19.65 an ounce. Asian and European stock markets were firmer overnight in subdued trading, as key worldwide economic data points are approaching fast. The highlights this week are the U.S. Federal Reserve’s FOMC meeting that begins Tuesday and the U.S. employment report Friday. Most expect the Fed will leave its monetary policy unchanged and continue to lean well to the dovish side at this week’s meeting. Many Fed watchers are actually looking ahead to the next FOMC meeting, in September, at which time the central bank could begin its much-anticipated “tapering” of its monthly bond-buying program, also called quantitative easing. For the U.S. jobs report, the key non-farm payrolls figure is forecast to rise by around 175,000 workers in July. The overall unemployment rate is expected to have declined by 0.1%, to 7.5%. The U.S. gross domestic product reading for the second quarter will also be released Wednesday. European traders are awaiting the European Central Bank and Bank of England monthly meetings that occur on Thursday. Asian traders and investors are awaiting manufacturing data from China, due out Thursday. The European Union did see its overall consumer confidence rise to the highest level in over a year, it was reported Tuesday. At present, the EU sovereign debt problems are pushed to the back burner of the market place, but have not just disappeared. The U.S. dollar index is near steady Tuesday morning and hovering near Monday’s five-week low. The greenback bears have the overall near-term chart advantage. Meantime, Nymex crude oil futures prices are lower Tuesday morning and hit a three-week low overnight. While the crude oil bulls still have the overall near-term technical advantage, they are fading. U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the S&P/Case-Shiller home price index, and the consumer confidence index. The London A.M. gold fix is $1,322.25 versus the previous London P.M. fixing of $1,331.00. Technically, December gold futures see a four-week-old price uptrend in place on the daily chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. 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 $1,338.50 and then at $1,350.00. First support is seen at the overnight low of $1,318.10 and then at $1,308.90. September silver futures are in a gentle four-week-old uptrend on the daily chart, but now just barely so, and bulls need to show more power very soon to keep it in place. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $20.595 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.215. First resistance is seen at the overnight high of $19.875 and then at $20.00. Next support is seen at the overnight low of $19.50 and then at $19.215.