Gold prices ended the U.S. day session sharply lower Monday, pressured by profit taking from recent gains, by weak long liquidation in the futures market, and by better risk appetite in the general marketplace to start the trading week. June Comex gold futures were last down $26.60 an ounce at $1,267.40. July Comex silver was last down $0.437 at $17.09 an ounce.
Technically, June gold futures prices closed nearer the session low today. The gold bulls still have the overall near-term technical advantage, but are fading again. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the May of $1,306.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,250.00. First resistance is seen at $1,272.40 and then at 1,280.00. First support is seen at today’s low of $1,263.60 and then at $1,250.00. Wyckoff’s Market Rating: 6.5
Gold slipped to a 1-1/2-week low on Tuesday, extending steep losses from the prior session as the dollar remained strong, curbing appetite for the precious metal.
Spot gold XAU= was off 0.3 percent at $1,260.31 an ounce by 0037 GMT, after hitting an early low of $1,259.51, its weakest since April 28. Bullion fell 1.9 percent on Monday, its sharpest single-day drop since March 23.
Tuesday marked gold's sixth fall out of seven sessions, having failed to hold above the $1,300 resistance, and not benefitting much from data last week showing that the U.S. economy added the fewest jobs in seven months in April.
Indians bought a third less gold than last year during the annual Hindu and Jain holy festival of Akshaya Tritiya on Monday, industry officials estimate, as droughts have hit the earnings of millions of farmers and the metal's price rallied.
Reference: Reuters, Kitco
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