(Kitco News) - Gold prices on Monday saw more profit-taking pressure and backing and filling on the daily chart, following recent gains that pushed prices to an 13-month high less than two weeks ago. Improved investor risk appetite in the world marketplace recently is also a negative for safe-haven gold. April Comex gold was last down $9.00 at $1,245.20 an ounce. May Comex silver was last up $0.059 at $15.87 an ounce.
World stock markets traded steady to mixed to start an Easter-holiday-shortened trading week. Many world markets are closed on Friday. U.S. stock indexes were modestly higher and near three-month highs in afternoon trading.
Crude oil prices were firmer in afternoon trading and hovering around $40.00 a barrel. There are technical clues crude oil has put in a market bottom, and that’s bullish for the precious metals and the entire raw commodity sector. The long and frustrating bust in the raw commodity sector is showing signs of ending.
The other key “outside market” saw the U.S. dollar index trading firmer Monday afternoon. The dollar index on Friday hit a five-month low and the bears are still in near-term technical control.
Technically, April gold futures prices closed nearer the session low today. Gold bulls still have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,287.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of 1,226.00. First resistance is seen at today’s high of $1,256.70 and then at $1,263.90. First support is seen at $1,240.00 and then at $1,230.00. Wyckoff’s Market Rating: 6.5
May silver futures prices closed nearer the session high. Prices Friday hit a 4.5-month high. The silver market bulls have the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the October high of $16.372 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.165. First resistance is seen at $16.00 and then at last week’s high of $16.17. Next support is seen at $15.565 and then at $15.40. Wyckoff's Market Rating: 6.0.
May N.Y. copper closed up 95 points at 229.20 cents today. Prices closed nearer the session high today. Prices Friday hit a 4.5-month high. The copper bulls have the overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 240.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the 215.00 cents. First resistance is seen at last week’s high of 2.3235 cents and then at 235.00 cents. First support is seen at today’s low of 227.00 cents and then at 225.00 cents. Wyckoff's Market Rating: 6.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
