(Kitco News) - Gold prices ended the U.S. day session solidly higher and pushed to a 2.5-month high Monday. A somewhat nervous world marketplace at present is working in favor of the safe-haven gold market. The near-term chart postures for gold and silver have significantly improved recently, which is inviting more technically related buying interest. Silver futures ended at a 2.5-month high close on Monday. April Comex gold was last up $11.30 an ounce at $1,232.10. March Comex silver was last up $0.201 at $17.68 an ounce.
It’s a light week for U.S. economic reports, so traders and investors are still focusing upon proclamations from U.S. President Donald Trump. On Friday, Trump took action to roll back the Dodd-Frank banking regulations. Later this week Trump meets with Japanese Prime Minister Shinzo Abe. The new U.S. president’s “loose cannon” approach to running the U.S. has many world market participants anxious, and that’s bullish for gold.
The marketplace on Monday was still buzzing a bit about last Friday’s U.S. employment report from the Labor Department. While the key non-farm payrolls number beat market expectations to the upside, the slowdown in U.S. wage growth leads many to believe the Federal Reserve may have to slow down its intended pace of interest rate increases this year. Such a scenario favors the raw commodity market bulls, who arguably in recent years have mostly benefitted from extremely low U.S. interest rates.
The U.S. dollar index was slightly higher today on a mild corrective bounce after hitting a 2.5-month low late last week. The dollar index is in a four-week-old downtrend on the daily bar chart and the greenback bears have the near-term technical advantage.
The other key “outside market” on Monday saw Nymex crude oil prices trade lower. Oil prices are trading sideways and choppy, still. Stiff technical resistance layers are located just above the market.
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![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically, April gold futures prices closed near the session high and hit a 2.5-month high today. The gold bulls now have the slight overall near-term technical advantage. Prices are in a six-week-old uptrend 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 $1,238.00 and then at $1,250.00. First support is seen at today’s low of $1,220.80 and then at $1,208.30. Wyckoff's Market Rating: 5.5
March silver futures prices closed near the session high and closed at a 2.5-month high close today. The silver market bulls have gained the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.635. First resistance is seen at last week’s high of $17.745 and then at $18.00. Next support is seen at today’s low of $17.46 and then at $17.26. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed up 355 points at 265.20 cents today. Prices closed nearer the session high. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 275.30 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at 267.50 cents and then at 269.40 cents. First support is seen at last week’s low of 261.20 cents and then at 258.15 cents. Wyckoff's Market Rating: 6.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
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