Gold Rebounds Amid Bullish "Outside Markets;" Bulls Remain In Technical Control

(Kitco News) - Gold prices ended the U.S. day session higher Wednesday on a corrective bounce from selling pressure seen earlier this week. Bullish outside markets that included a lower U.S. dollar index and higher crude oil prices on this day were also a positive for the precious metals markets. June Comex gold futures were last up $10.70 an ounce at $1,275.50. July Comex silver was last up $0.238 at $17.33 an ounce.

Wednesday was another uneventful day in the marketplace. It’s been a quieter week, markets-moving news-wise. World equities markets were mostly weaker on corrective pullbacks from gains seen earlier this week. U.S. stock indexes were weaker in afternoon trading Wednesday.

The lower U.S. dollar index Wednesday helped give a lift to many raw commodity markets. The dollar index had seen a decent rebound the past several sessions, but the greenback bears continue to have the overall near-term technical advantage. Meantime, the other key “outside market” was also friendly to the raw commodity bulls Wednesday as Nymex crude oil prices were solidly higher.

Technically, June gold futures prices closed near mid-range. The gold bulls have the firm overall near-term technical advantage, which means the path of least resistance for prices will remain sideways to higher for at least the near term. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the May of $1,306.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,250.00. First resistance is seen at today’s high of $1,280.80 and then at 1,287.60. First support is seen at today’s low of $1,266.30 and then at this week’s low of $1,258.50. Wyckoff’s Market Rating: 7.0

July silver futures prices closed near mid-range today. The silver market bulls have the firm overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the May high of $18.06 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.80. First resistance is seen at $17.50 and then at $17.77. Next support is seen at today’s low of $17.125 and then at this week’s low of $16.925. Wyckoff's Market Rating: 7.0.

July N.Y. copper closed down 100 points at 210.25 cents today. Prices closed nearer the session 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 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the April low of 207.90 cents. First resistance is seen at 212.00 cents and then at today’s high of 213.20 cents. First support is seen at 207.90 cents and then at 205.00 cents. Wyckoff's Market Rating: 3.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com