(Kitco News) - Gold prices ended the U.S. day session modestly lower on some profit-taking from the shorter-term traders and on some technical chart consolidation. This backing and filling on the charts is not uncommon and is actually a healthy sign for the gold market bulls, as it suggests the price uptrend on the daily chart can continue. April Comex gold was last down $5.30 at $1,257.70 an ounce. May Comex silver was last down $0.02 at $15.37 an ounce.
The key “outside markets” on Wednesday saw the U.S. dollar index weaken during the session and crude oil prices rally, with Nymex April futures hovering just below $38.00 a barrel. These two markets were in a bullish posture for the precious metals on this day.
World stock markets were mostly firmer Wednesday after some selling pressure earlier this week. U.S. stock indexes were higher in afternoon trading. The better risk appetite in the marketplace so far Wednesday was another daily negative for the safe-haven gold market.
The focus of traders and investors is the Thursday meeting of the European Central Bank. Many believe the ECB will announce further monetary policy stimulus measures by pushing interest rates further into negative territory, in an effort to jumpstart the flagging Euro zone economy.
A two-year German government note auction Wednesday fetched a record low yield of minus 0.55%. The high demand for safe-haven German government debt reminds the marketplace of the poor health of the European Union’s economy and its shaky financial system.
Technically, April gold futures prices closed nearer the session high. Prices are still in a nearly three-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 today’s high of $1,265.70 and then at last week’s high of $1,280.70. First support is seen at $1,250.00 and then at today’s low of $1,243.60. Wyckoff’s Market Rating: 7.5
May silver futures prices closed nearer the session high 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 $15.50 and then at last week’s high of $15.84. Next support is seen at today’s low of $15.205 and then at $15.00. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed up 110 points at 223.25 cents today. Prices closed near mid-range. The copper bulls 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 today’s high of 225.30 cents and then at Tuesday’s high of 227.65 cents. First support is seen at this week’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
