(Kitco News) - Gold prices ended the U.S. day session solidly lower Monday, on a corrective and profit-taking pullback following Friday’s push to a 13-month high. Improved risk appetite in the marketplace early this week is a bearish element for safe-haven gold. April Comex gold was last down $16.30 at $1,243.00 an ounce. May Comex silver was last down $0.105 at $15.50 an ounce.
The key “outside markets” were also in a bearish posture for the precious metals markets today, as the U.S. dollar index was higher and crude oil prices were lower.
Global stock markets were mostly higher Monday, as investor risk appetite in the market place has returned, at least on this day.
Arguably the most important data point of the week will be the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement and a press conference from Fed Chair Janet Yellen. No changes in U.S. monetary policy are expected at this meeting, but as always traders and investors will be closing parsing the FOMC statement for clues on Fed policy moves in the coming weeks or months. The market place believes there is about a 50-50 chance the Fed will raise U.S. interest rates at its June meeting.
In overnight news, January industrial production in the Euro zone rose by 2.1% month-on-month and was up 2.8% year-on-year, which was the best reading in six years. Still, the Euro currency was weaker on the day.
There was no major U.S. economic data due for release Monday but the report pace picks up significantly on Tuesday and the rest of this week.
Technically, April gold futures prices closed nearer the session low. Prices are still in a 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 last week’s high of $1,287.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at $1,250.00 and then at today’s high of $1,261.90. First support is seen at last week’s low of $1,237.50 and then at $1,230.00. Wyckoff’s Market Rating: 7.0
May silver futures prices closed nearer the session low today after hitting a four-week high early on. The silver market bulls have the slight near-term technical advantage. 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 today’s high of $15.85 and then at $16.005. Next support is seen at today’s low of $15.41 and then at $15.25. Wyckoff's Market Rating: 5.5.
May N.Y. copper closed down 15 points at 223.95 cents today. Prices closed nearer the session low. The copper bulls have the slight overall near-term technical advantage. Prices are in a two-month-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 225.65 cents and then at today’s high of 227.75 cents. First support is seen today’s low of 222.70 cents and then at last week’s low of 220.35 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
