Gold Ends Slightly Up, But Well Down From Daily High

(Kitco News) - Gold prices ended the U.S. day session slightly higher Monday but well off the highs seen earlier in the day. A rally in the U.S. stock market Monday worked to temper buying interest in the safe-haven metal. Still, gold continues to show the resilience required to extend the present near-term price uptrend. June Comex gold futures were last up $1.00 an ounce at $1,273.90. July Comex silver was last up $0.023 at $17.155 an ounce.

World stock markets were mostly weaker overnight, pressured in part by some weak economic data coming out of China, the world’s second-largest economy. Industrial production and retail sales data released during the weekend were deemed downbeat. China’s industrial production in April came in at up 6.0%, year-on-year, compared to up 6.8% in March. Retail sales were up 10.1% in April, which was less than expected.

U.S. stock indexes were also weaker overnight, but began to rally once the U.S. day session began.

The key “outside markets” were bullish for the precious metals markets Monday, as the U.S. dollar index was slightly lower and Nymex crude oil prices were solidly higher and hit a six-month high. However, these outside markets also worked to rally U.S. stocks, which in turn helped to mitigate buying interest in gold.

Technically, June gold futures prices closed nearer the session low. The gold bulls have the firm overall near-term technical advantage. 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 $1,280.00 and then at today’s high of $1,290.40. First support is seen at $1,270.00 and then at $1,264.00. Wyckoff’s Market Rating: 7.0

July silver futures prices closed nearer the session low today. The silver market bulls still have the overall near-term technical advantage, but are fading a big as a near-term downtrend line is in place on the daily bar chart. 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 $16.50. First resistance is seen at today’s high of $17.43 and then at $17.77. Next support is seen at last week’s low of $16.85 and then at $16.50. Wyckoff's Market Rating: 6.5.

July N.Y. copper closed up 145 points at 208.85 cents today. Prices closed nearer the session high today. The copper bears have the firm 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 200.00 cents. First resistance is seen at today’s high of 210.65 cents and then at 214.00 cents. First support is seen at last week’s low of 205.90 cents and then at 202.00 cents. Wyckoff's Market Rating: 2.5.

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