Gold Stalls Below $4,000, Silver Struggles Near $60

Gold prices have been hovering near $4,028 after testing below $4,000 earlier in July. Jeffrey Christian of CPM Group suggests that a break above the current downward trendline could lead to a short-lived move towards $4,200. On the other hand, a break below $4,000 could result in another sharp decline.

The August COMEX gold futures contract saw open interest fall from 19.3 million ounces to 13.9 million ounces as traders rolled positions into October and December. This activity may support gold prices for several more days, but the effect is expected to fade as the August delivery period begins.

Silver, trading near $57.52, continues to struggle with resistance around $60. A break above this trendline could carry silver towards $64, while a break below $55 could open the way to $50 or even $45.