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• Gold prices ended higher Wednesday as the dollar extended its decline, but strength in U.S. equities and Treasury yields served to cap the metal’s upside.

• Gold for August delivery on Comex GCQ7, +0.04% rose $2.20, or 0.2%, to settle at $1,249.10 an ounce, while September silver SIU7, +0.26% advanced 14 cents, or 0.8%, to $16.791 an ounce.

• The ICE U.S. dollar DXY, -0.12% a measure of the U.S. unit against a basket of six major rivals, was off 0.4% at 96.02 as gold prices settled, leaving it down more than 1% for the week. A weaker currency is seen boosting commodities priced in dollars, including gold, as it makes them cheaper to users of other currencies.

But dollar weakness has provided only modest support for gold, which remains down 0.6% so far this week.

The boost from a weaker currency was partly offset by gains in the U.S. stock market Wednesday, which benefited from a rally in financial shares, as well as by rising Treasury yields.

• “On the one hand, a lower U.S. dollar and lower equity markets are supportive for gold prices. On the other hand, the modest rise in U.S. real yields and expectations of less accommodative monetary policies ahead are negative forces for gold, as investors will find gold less attractive as investment asset because gold does not pay interest,” said Georgette Boele, a currency and precious metals analyst at ABN Amro, in a note.

“As a result of these offsetting forces, gold prices are currently trading close to our end-of-quarter forecast [at] $1,250 per ounce,” she said.

• Technically, August gold futures prices closed nearer the session low. The gold bears still have the overall near-term technical advantage as prices are in a three-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,270.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,217.80. First resistance is seen at today’s high of $1,255.70 and then at last week’s high of $1,260.00. First support is seen at Tuesday’s low of $1,241.80 and then at this week’s low of 1,236.50.Wyckoff's Market Rating: 4.0