Metals – May 24, 2007

June COMEX gold futures closed up $2.70 at $662.60 today. Prices closed nearer the session high today on some short covering and bargain-hunting buying. Some near-term chart damage has been inflicted in gold recently. And if the U.S. dollar continues to strengthen versus the other major currencies, gold bulls are going to be in serious trouble. Prices are still in a five-week-old downtrend on the daily bar chart. Gold bulls’ next upside price objective is to produce a close above solid resistance at $670.00 an ounce. Bears’ next downside price objective is closing prices below strong technical support at last week’s low of $654.10. First resistance is seen at this week’s high of $665.90 and then at $667.50. Support is seen at today’s low of $657.50 and then at $654.10.

Wyckoff’s Market Rating: 5.0.

JULY SILVER

July silver futures closed up 11.5 cents at $13.105 an ounce today. Prices closed nearer the session high today. Some short covering was featured. Prices are still in a six-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above solid resistance at $13.40. The next downside price objective for the bears is closing prices below solid technical support at the May low of $12.76. First resistance is seen at today’s high of $13.20 and then at $13.30. Next support is seen at $13.00 and then at today’s low of $12.955.

Wyckoff’s Market Rating: 5.0.