(Kitco News) - Gold prices ended the U.S. day session solidly lower Tuesday and closed at the lowest closing level of the month. More profit-taking pressure from recent gains was featured.
Bearish “outside markets” early this week—lower crude oil prices and a firmer U.S. dollar index—are also working against the precious metals markets bulls. No serious near-term chart damage has been inflicted in gold, but the bulls have faded and need to show some fresh power soon. April Comex gold was last down $15.10 at $1,230.00 an ounce. May Comex silver was last down $0.241 at $15.275 an ounce.
Traders and investors are awaiting what is arguably the most important data point of the week and month: the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday and ends Wednesday afternoon with a statement and 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 closely parsing the FOMC statement and Yellen’s comments for clues on Fed policy moves in the coming weeks or months. The marketplace believes there is about a 50-50 chance the Fed will raise interest rates in June.
There was a heavy slate of U.S. economic data due released Tuesday, including retail sales, the producer price index and manufacturing and trade inventories. However, the data had little impact on the precious metals markets.
Technically, April gold futures prices closed near mid-range today. A three-month-old uptrend on the daily bar chart was at least temporarily negated today. Gold bulls still have the overall near-term technical advantage but are fading and need to show fresh power soon. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,261.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at today’s high of $1,238.70 and then at $1,250.00. First support is seen at today’s low of $1,226.00 and then at $1,220.00. Wyckoff’s Market Rating: 6.5
May silver futures prices closed near mid-range today. The silver market bulls and bears are back on a level near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $15.85 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 $15.42 and then at $15.50. Next support is seen at last week’s low of $15.165 and then at $15.00. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed down 20 points at 223.75 cents today. Prices closed nearer the session high. 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 this week’s high of 227.75 cents. First support is seen at 222.00 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
