Metals Commentary

August gold futures closed up $1.70 at $1,244.10 yesterday. Prices closed near mid-range today in quieter trading. The gold bulls still have the solid overall near-term technical advantage. There are still no early technical clues to suggest a market top is close at hand. Prices are in a five-month-old uptrend on the daily bar chart. Bulls' next upside technical objective is to produce a close above solid chart resistance at the all-time high of $1,266.50. Bears' next downside price objective is closing prices below technical support at the last "reaction low" on the daily bar chart, which is located at last week's low of $1,225.20. First resistance is seen at yesterday's high of $1,248.80 and then at $1,254.50. Support is seen at yesterday's low of $1,235.10 and then at this week's low of $1,227.60. Wyckoff's Market Rating: 8.0.

December N.Y. copper closed up 215 points at 297.40 cents yesterday. Prices closed nearer the session high yesterday and saw a short covering bounce in a bear market. Bears still have the overall near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at the June low of 277.00 cents. Bulls' next upside objective is pushing and closing prices above solid technical resistance at this week's high of 313.75 cents. First resistance is seen at 300.00 cents and then at 305.00 cents. First support is seen at 295.00 cents and then at today's low of 290.00 cents. Wyckoff's Market Rating: 3.5.