(Kitco News) - Gold prices ended the U.S. day session higher Tuesday, on safe-haven demand and on bargain hunting following recent selling pressure. June Comex gold was last up $10.80 at $1,230.10 an ounce. May Comex silver was last up $0.151 at $15.095 an ounce.
There was some keener risk aversion in the marketplace Tuesday. There are fresh concerns about Greece and its ongoing sovereign debt problems. There was some downbeat economic data coming out of the European Union. And the recent downturn in crude oil prices and many other raw commodity markets—and the deflationary implications--are also unsettling to traders and investors worldwide.
World stock markets were mostly lower Tuesday. However, China shares did rally Tuesday after Chinese markets were closed for a holiday on Monday. U.S. stock indexes were weaker in afternoon trading.
The key “outside markets” on Tuesday saw the U.S. dollar index firmer on a corrective bounce from recent selling pressure that drove the greenback to a seven-month low late last week. Nymex crude oil prices were slightly lower and hit a four-week low today.
On tap Wednesday afternoon is the minutes from the latest FOMC meeting, which could impact the markets.
Technically, June gold futures prices closed near mid-range. Gold bulls have the overall near-term technical advantage. However, a three-week-old downtrend is in place on the daily bar chart. 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 $1,238.80 and then at last week’s high of $1,246.80. First support is seen at $1,225.00 and then at today’s low of $1,216.00. Wyckoff’s Market Rating: 6.0
May silver futures prices closed near mid-range today on short covering. The silver market bears have the slight overall level near-term technical advantage. 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 $14.61. First resistance is seen at today’s high of $15.22 and then at $15.40. Next support is seen at last week’s low of $14.785 and then at $14.61. Wyckoff's Market Rating: 4.5.
May N.Y. copper closed down 40 points at 213.65 cents today. Prices closed nearer the session low today and hit another four-week low today. The copper bears have the 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 205.00 cents. First resistance is seen at this week’s high of 217.30 cents and then at 220.00 cents. First support is seen at today’s low of 213.15 cents and then at 210.00 cents. Wyckoff's Market Rating: 3.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
