Gold Ending 5-day Winning Streak As U.S. Dollar Firms

(Kitco News) - Gold prices were ending the U.S. day session weaker Thursday, on a corrective pullback from recent gains that saw prices Wednesday hit a nearly three-month high. Some profit taking from the shorter-term futures traders was featured. Also, a higher U.S. dollar index on this day worked against the precious metals markets bulls. April Comex gold was last down $5.40 an ounce at $1,234.10. March Comex silver was last down $0.01 at $17.70 an ounce.

It’s been a quieter week for world economic data releases. That means the marketplace has been fixated on and a bit nervous about any new directives issued from U.S. President Trump. Trumps tweets on matters can come out of the blue and tend to be hard-hitting. Trump does not pull punches. Trump and Japanese Prime Minister Shinzo Abe meet late this week. Currency market traders are especially anxious regarding the U.S. naming countries, possibly including Japan and China, as currency manipulators. Gold has recently seen safe-haven demand since the U.S. president took office in late January.

The U.S. dollar index is traded firmly higher Thursday. The greenback bulls are having a good week, so far.

The other key “outside market” on Thursday saw Nymex crude oil prices trading higher on short covering after hitting a nine-week low Wednesday. A bullish weekly DOE liquid energy stocks report for gasoline on Wednesday helped to boost crude prices.

Technically, April gold futures prices closed nearer the session low. The gold bulls still have the 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 $1,265.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,210.00. First resistance is seen at this week’s high of $1,246.60 and then at $1,250.00. First support is seen at $1,230.00 and then at $1,225.00. Wyckoff's Market Rating: 6.0

March silver futures prices closed nearer the session low on mild profit taking after hitting a nearly three-month high Wednesday. The silver market bulls still have 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 $17.00. First resistance is seen at this week’s high of $17.875 and then at $18.00. Next support is seen at this week’s low of $17.46 and then at $17.26. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed down 170 points at 264.95 cents today. Prices closed nearer the session low. 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 today’s high of 267.65 cents and then at this week’s high of 269.10 cents. First support is seen at 263.20 and then at last week’s low of 261.20 cents. Wyckoff's Market Rating: 6.5.

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