(Kitco News) - Gold prices on Wednesday ended the U.S. day session moderately lower and took back around half of Tuesday’s solid gains. Profit taking from the shorter-term futures traders was featured. The presently improved trader/investor risk appetite in the world marketplace is also bearish for safe-haven gold. June Comex gold was last down $8.20 at $1,229.20 an ounce. May Comex silver was last down $0.008 at $15.225 an ounce.
The U.S. ADP March national employment report was released Wednesday morning showed a jobs gain of 200,000, which was in line with market expectations. The markets saw little reactions to the data. This report came ahead of Friday’s important U.S. employment report from the Labor Department.
Asian and European stock markets were mostly higher Wednesday, on bullish reactions to remarks from Federal Reserve Chair Janet Yellen's speech to the Economic Club of New York on Tuesday afternoon. U.S. stock indexes were in afternoon trading, on follow-through buying from Tuesday’s solid gains.
The marketplace deemed Yellen's comments as fully dovish on U.S. monetary policy. Yellen said the U.S. economic growth pace has weakened and the pace of interest rate increases by the Fed will be only gradual. She said global developments and slow world economic growth also pose ongoing risks for the U.S. economy. Yellen also said the FOMC is not on a preset course of monetary policy tightening. Just recently, many market watchers were thinking the Fed might raise interest rates as soon as next month. However, Yellen’s remarks Tuesday put the monetary hawks in a cage.
The U.S. dollar index has weakened significantly in the wake of Yellen’s dovish speech Tuesday afternoon. The depreciating greenback this week has helped to lift crude oil prices and some other raw commodity markets. Nymex crude oil prices are presently hovering just above $38.00 a barrel.
Technically, June gold futures prices closed nearer the session low and saw a corrective pullback from Tuesday’s solid gains. 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 $1,264.10. 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 $1,246.80 and then at $1,250.00. First support is seen at today’s low of $1,224.90 and then at Tuesday’s low of $1,217.00. Wyckoff’s Market Rating: 6.0
May silver futures prices closed nearer the session low today. The silver market bulls and bears are on an overall level near-term technical playing field. 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 $15.46 and then at $15.75. Next support is seen at this week’s low of $15.06 and then at $15.00. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed down 220 points at 219.20 cents today. Prices closed nearer the session low today and hit another nearly four-week low. The copper bears now 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 210.00 cents. First resistance is seen at today’s high of 222.10 cents and then at this week’s high of 225.55 cents. First support is seen at today’s low of 218.15 cents and then at 215.00 cents. Wyckoff's Market Rating: 4.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
