(Kitco News) - Gold prices are ended the U.S. day session slightly lower Monday, and did notch a five-week low overnight. Less risk aversion in the marketplace to start the trading week is a negative for safe-haven gold. Also, the recent selling pressure in gold has invited chart-based selling from the shorter-term futures traders. June Comex gold was last down $1.60 at $1,221.90 an ounce. May Comex silver was last up $0.006 at $15.205 an ounce.
Asian stock markets were mixed overnight in quieter trading. European stock markets were closed Monday for the Easter holiday. U.S. stock indexes were trading narrowly mixed Monday afternoon.
A major terror attack that killed dozens in Pakistan Sunday is so far having minimal impact on the world marketplace. However, following last week’s terror attacks in Brussels and this latest event, focus of traders and investors is keener on world terror.
The key “outside markets” on Monday afternoon saw the U.S. dollar index trading weaker on a corrective pullback. The greenback bulls had gained some upside near-term technical momentum recently, which had been a negative for the raw commodity markets, including the precious metals. Meantime, Nymex crude oil futures prices were weaker and trading just above $39.00 a barrel. Oil prices have seen good selling pressure recently. Oil bulls need to step up early this week and show strength, in order to keep a six-week-old uptrend in place on the daily bar chart.
The big economic data point of the week will be Friday’s U.S. employment report from the Labor Department. Markets may be quieter ahead of that key report.
Technically, June gold futures prices closed nearer the session high and did hit a fresh five-week low early on today. Gold bulls still have the overall near-term technical advantage, but are fading badly and need to show fresh power very soon. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. 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 $1,225.10 and then at $1,230.00. First support is seen at last week’s low of $1,212.60 and then at today’s low of $1,207.70. Wyckoff’s Market Rating: 6.0
May silver futures prices closed nearer the session low today. The silver market bulls have faded badly and are 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 today’s high of $15.375 and then at $15.50. Next support is seen at last week’s low of $15.105 and then at $15.00. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed up 130 points at 224.20 cents today. Prices closed nearer the session high today. The copper bulls still have the slight overall near-term technical advantage. 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 today’s high of 225.55 cents and then at 228.00 cents. First support is seen at today’s low of 224.25 cents and then at last week’s low of 220.55 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
