I found this:
futuresource.com
ODJ NY Precious Metals Review: Gold Slips But Holds Above $360
-- Steady Dollar, Speculative Long Position Spark Profit Taking
-- Further Profit Taking Allowed For In Coming Days
-- Silver Settles Lower But Well Off Early Lows
By Gavin Maguire
New York, July 29 (OsterDowJones) - Comex Aug gold futures sank $3.20 to
$361.70 per ounce Tuesday on long liquidation and profit taking spurred by the
more stable tone of the U.S. dollar and a lightening in the recent speculative
buying interest.
Some price slippage had been expected following Aug gold's stretch to
eight-week highs in recent days on speculative long accumulation, sources said.
That Aug proved unable to extend the push above the $367 level Monday -
combined with the fairly stable showing by the U.S. dollar - saw the
speculative bids for gold dry up slightly and proved the catalyst for the long
liquidation seen overnight and through Tuesday.
Additional long liquidation has been allowed for over the coming days
should no fresh waves of fund buying emerge. The $360, $358 and $355-$356
regions are eyed as probable locations of support for prices basis the Aug
contract.
For Dec prices, support is touted around $362, $360 and $358, dealers said.
However, much depends on the tone and direction of the euro relative to
the U.S. dollar. Any further probes higher in the European currency are
expected to generate additional buying interest in gold that could renew the
recent upward path.
On the other hand, any dollar gains at the expense of the euro are seen
applying additional pressure on gold.
Spot gold is deemed subject to the same rules. Support is flagged around
$360 and $358 initially, while resistance is expected around $367-$368 ahead
of the $370 mark.
Sep silver futures opened 12 cents lower at $5.075 following a spate of
profit taking and long liquidation overnight.
However, the softer prices were viewed as a buying opportunity by the
speculative community, which has steered silver prices to one-year highs
recently. Sep subsequently returned above $5.10 to the $5.165 area by
settlement.
Sources said that while further speculative buying may be seen over the
coming days, at some point a spate of profit taking and consolidation is seen
taking place. In that event, downside targets for Sep include the $5 levels
and the $4.95-$4.96 region, dealers said.
In the meantime, however, sellers remain scarce and the $5.20-5.25 region
remains eyed as a viable upside target.
Nymex Oct platinum secured a $1.60 gain to settle at $698 and a contract
high. Prices had poked above the $700 level to $701 very early in the session
but ran into profit taking and less buying interest at those rarefied levels.
On the spot market, prices are nearing their highest levels since early
May 2003, but further gains have been allowed for near term.
However, profit taking and short selling are expected in the $710 area as
that level capped progress so far this year, and prices are already nearing
overbought territory on the charts.
Support is seen around $690, $685 and $680 basis Oct futures on any
descent.
Sep palladium gained $4.85 to settle at $178.35 to close the session at
its highest level in 15 days.
Further gains are deemed possible near term, with the $185 area targeted.
However, some profit taking is also deemed on the cards, sources said. |
