(Kitco News) - Gold prices ended the U.S. day session near unchanged and gave back moderate early gains Tuesday. More mild profit-taking pressure was seen, as well as some backing and filling on the near-term charts. The yellow metal bulls are still enjoying the firm overall near-term technical advantage, which means the path of least resistance for prices remains sideways to higher. April Comex gold was last up $0.10 at $1,264.10 an ounce. May Comex silver was last down $0.193 at $15.435 an ounce.
There was keener risk aversion in the marketplace Tuesday and that did limit the downside price action in gold. World stock markets were mostly lower, pressured by weak import and export data coming out of China, the world’s second-largest economy. China’s exports showed their largest decline in five years in February. Imports were also down sharply in February. U.S. stock indexes were slightly lower in afternoon trading and up from the daily lows.
The key “outside markets” on Tuesday saw the U.S. dollar index slightly higher and crude oil prices solidly lower, with Nymex April futures hovering just below $37.00 a barrel.
The focus of traders and investors this week is the Thursday meeting of the European Central Bank. Many believe the ECB this week will announce further monetary policy stimulus measures by pushing interest rates further into negative territory, in an effort to jumpstart the moribund Euro zone economy.
Technically, April gold futures prices closed near the session low. Prices are still in a 2.5-month-old uptrend on the daily bar chart and bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,238.00. First resistance is seen at $1,274.10 and then at last week’s high of $1,280.70. First support is seen at Monday’s low of $1,257.40 and then at $1,250.00. Wyckoff’s Market Rating: 7.5
May silver futures prices closed near the session low today. The silver market bulls and bears are on a level overall near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the February high of $16.005 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.61. First resistance is seen at last week’s high of $15.84 and then at $16.005. Next support is seen at today’s low of $15.38 and then at $15.25. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed down 640 points at 221.95 cents today. Prices closed nearer the session low on a corrective pullback from recent gains. Prices Monday closed at a four-month high close. The copper bulls still have the slight overall near-term technical advantage. Prices are still in a seven-week-old uptrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 235.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the 210.00 cents. First resistance is seen at 225.00 cents and then at today’s high of 227.65 cents. First support is seen at today’s low of 220.35 cents and then at 217.05 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
