By Jim Wyckoff of Kitco News
Comex gold futures prices are not straying far from unchanged levels Monday morning, amid a generally quiet market place to start the new trading week. Traders are awaiting some fresh fundamental news to digest, now that Friday's much-anticipated European Union bank stress test results are out of the way, after having been met with little fanfare by traders. August gold last traded down $1.00 an ounce at $1,186.80. Spot gold was last quoted down $2.50 at $1,187.50.

The U.S. stock indexes are slightly lower, while the U.S. dollar index is also weaker and the Euro currency firmer Monday morning. Crude oil prices are trading weaker. None of these key "outside markets" is providing the gold market with a strong trading direction to start the week.

U.S. economic data on tap Monday include the Chicago Fed national activity index and U.S. new residential home sales. The U.S. economic report slate gets busier as this week progresses, however.

News wire reports overnight said gold holdings in the world's largest exchange traded fund, SPDR Gold Shares, declined by 12 metric tons, which is the largest weekly withdrawal since January.

The London A.M. gold fix was $1,189.00 versus the previous P.M. fixing of $1,190.50.

Technically, August Comex gold futures bears still have some near-term momentum on their side, as prices are in a six-week-old downtrend on the daily bar chart.

For the gold market bulls to gain fresh upside near-term technical momentum, they will have to push and close August futures prices back above solid chart resistance at last week's high of $1,203.90 an ounce. The bears' next downside price objective is producing a close in August gold futures below strong chart support at last week's low of $1,175.10.

For August gold, shorter-term technical resistance is seen at the overnight high of $1,194.80 and then at $1,200.00. Buy stops likely reside just above those levels. Sell stops likely reside just below chart support at the overnight low of $1,185.00 and then at $1,180.00. Today's key near-term Fibonacci pivot level for August gold: $1,196.00.

Comex silver futures are trading slightly lower Monday morning. December silver last traded down 6.3 cents at $18.095 an ounce. Prices are in a six-week-old downtrend on the daily bar chart.

The next near-term upside price objective for the silver market bulls is to push and close December Comex futures prices above solid chart resistance at $18.59 an ounce. The next downside price objective for the silver bears is to push and close December silver prices below solid technical support at the July low of $17.50.

December silver finds shorter-term technical resistance at last week's high of $18.335 and then at $18.59. Buy stops likely reside just above those levels. Shorter-term technical support for December silver is located at $18.00 and then at $17.75. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for December silver futures is located at $18.28.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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