August gold futures fell yet again Monday and below key moving averages including the 100 day and 200 day moving average. As stock indices continue to make new all time highs while the greenback slowly continues its post Fed meeting advance, investors are slowly being drawn away from traditional safe havens like gold and silver. A few weeks prior when the net speculative long for gold pushed out to 210,000 contracts, data from the last COT reports shows the net long fund positioning at 120,000 contracts long. For silver, the net long comes in at 72,000 contracts, coming down from 110,000 contracts in late May. Clearly the long liquidation is bearish for the market and it may not be over yet. Precious metal bulls need to be fed bullish news and for now the geo-political chaos that the market has become so accustomed to has quieted for now. Which brings us back to equities. Higher equities are the enemy of higher bullion prices, and with stocks indexes posting all-time highs seemingly each week, the investment of choice by investors is clear. As a result, the path of least resistance is lower for now for metals.
Technical levels to watch for August gold comes in as follows. For August gold, support is down at 1244.6 and then 1232.9. A close under here and 1221.0 is the next level. Resistance sits up at 1264.4 and then 1276.1. For July Silver, support is down at 1639.7 and then 1615.6. Resistance is up at 1688.1 and then 1714.2