(Kitco News) - Gold prices were ending the U.S. day session higher Tuesday, on a good corrective bounce from the solid selling pressure seen Monday. Some more trader and investor anxiety surfaced Tuesday, which led to fresh buying interest in safe-haven gold. The gold market bulls continue to show resilience amid the recent price uptrend on the daily chart. April Comex gold was last up $13.70 at $1,223.80 an ounce. March Comex silver was last up $0.066 at $15.25 an ounce.
World stock markets were weaker Tuesday. Once again, equities markets are being heavily influenced by the daily price movements in the crude oil futures markets. Nymex crude oil futures posted solid gains on Monday, but most of those gains were taken back Tuesday, partly due to the Saudi Arabian oil minister reportedly saying at a conference in the U.S. that his country is not willing to reduce its crude oil production. Also, an International Energy Agency report issued Tuesday said even if U.S. oil shale production declines, and OPEC and Russia start to reel in their oil production levels, it would still likely take a couple of years to work through the present oil glut worldwide.
There were also renewed concerns about the world financial and banking sector Tuesday. JP Morgan shares were under pressure Tuesday on reports that big banking firm is in some trouble with its energy loans.
China is still a focal point for world traders and investors. Chinese officials Tuesday lowered the value of the Chinese yuan currency against the U.S. dollar. Later this week the Group of 20 industrial nations meets, and China’s economic issues are likely to be a major topic.
Technically, April gold futures prices are in a two-month-old uptrend on the daily bar chart and the bulls have the overall near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,263.90. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,150.00. First resistance is seen at today’s high of $1,228.90 and then at $1,235.30. First support is seen at the overnight low of $1,207.60 and then at $1,200.00. Wyckoff’s Market Rating: 6.5
March silver bulls and bears are now on a level near-term technical playing field, after the recent selling pressure. Silver bulls’ next upside price breakout objective is closing March futures prices above solid technical resistance at the February high of $15.99 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is at this week’s high of $15.37 and then at $15.57. Next support is seen at today’s low of $15.17 and then at this week’s low of $14.945. Wyckoff's Market Rating: 5.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
