(Kitco News) - Gold prices ended the U.S. day session sharply lower and hit a three-week low Wednesday. The safe-haven metal was shunned on this day as worldwide investor and trader risk appetite has up-ticked at mid-week. Also, the key “outside markets” were in a bearish posture for the precious metals today, as the U.S. dollar index was higher and crude oil prices were lower. April Comex gold was last down $24.70 at $1,223.90 an ounce. May Comex silver was last down $0.61 at $15.27 an ounce.
There was also some near-term technical damage inflicted in gold Wednesday, as the nearly three-month-old price uptrend on the daily bar chart was negated, which set off chart-based selling, including sell stop orders being triggered in the gold futures market.
World stock markets stabilized Wednesday, with European stock markets recovering after selling off in the immediate aftermath of the Brussels terror attacks Tuesday. U.S. stock indexes were lower in afternoon dealings.
In overnight news, the German government auctioned a 30-year bond Wednesday that fetched a record low average yield of 0.94%. That’s an indication of the keener risk aversion that European investors are exhibiting at present. German government debt is considered to be the safest asset among most European bond investors.
The U.S. dollar index traded solidly Wednesday as the greenback bulls are having a very good week, after prices hit a multi-month low last week. Meantime, Nymex crude oil futures prices were solidly lower, but still trading just above the key $40.00-a-barrel level in afternoon action. There are still early technical signals that crude oil prices have at least put in a near-term bottom, if not a major market low.
Technically, April gold futures prices closed nearer the session low today. Gold bulls still have the overall near-term technical advantage, but are fading. A nearly three-month-old uptrend on the daily bar chart was negated today. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,260.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at $1,230.00 and then at $1,240.00. First support is seen at today’s low of $1,215.40 and then at $1,210.00. Wyckoff’s Market Rating: 6.0
May silver futures prices closed nearer the session low. The silver market bulls faded badly today and are now back on an overall level near-term technical playing field with the bears. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.17 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at $15.50 and then at $15.75. Next support is seen at $15.165 and then at $15.00. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed down 465 points at 224.25 cents today. Prices closed nearer the session low today on profit taking. The key “outside markets” were bearish for copper today as the U.S. dollar index was higher and crude oil prices were lower. The copper bulls still have the slight overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart, but now just barely. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the March high of 232.35 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 226.00 cents and then at 228.00 cents. First support is seen at today’s low of 223.05 cents and then at 220.00 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
