Gold Up, Hits 3.5-Mo. High, As Traders Buy The Overnight Dip

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(Kitco News) - Gold prices ended the U.S. day session with decent gains and scored another 3.5-month high Monday. Silver prices also hit a 3.5-month high. After some mild overnight weakness, traders stepped in to buy the dip in the gold market. The near-term technical postures for all the precious metals markets continue to get more bullish, and that’s inviting more chart-based buying interest in the precious metals. April Comex gold was last up $4.40 an ounce at $1,262.80. May Comex silver was last up $0.064 at $18.47 an ounce.

The key “outside markets” on Monday were also in bullish daily postures for the precious metals. The U.S. dollar index was lower. The dollar index is still in a fledgling price uptrend on the daily chart. Meantime, Nymex crude oil futures prices were firmer today. Oil prices are still in a sideways and choppy trading range that has bound that market for weeks.

The marketplace this week is focused on U.S. President Donald Trump’s speech to the U.S. Congress on Tuesday evening. He will provide U.S. lawmakers with his plans for growing the U.S. economy, as well as other domestic and foreign matters. U.S. Federal Reserve officials, including Chair Janet Yellen, are also scheduled to speak this week. Their comments will be closely scrutinized following last week’s FOMC minutes that were deemed by many market watchers as a bit dovish on U.S. monetary policy.

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Technically, April gold futures prices closed nearer the session high today. The gold bulls have the firm overall near-term technical advantage. Prices are in a nine-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 $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at $1,268.00 and then at $1,275.00. First support is seen at today’s low of $1,254.10 and then at $1,250.00. Wyckoff's Market Rating: 6.5

May silver futures prices closed nearer the session high and hit another 3.5-month high today. The silver market bulls have the firm overall near-term technical advantage. Prices are in a nine-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at today’s high of $18.54 and then at $18.75. Next support is seen at Friday’s low of $18.21 and then at $18.00. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed up 20 points at 269.80 cents today. Prices closed near the session high. The copper bulls have the overall near-term technical advantage but have faded recently. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 283.60 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 272.50 cents and then at 275.00 cents. First support is seen at last week’s low of 265.25 and then at 262.60 cents. Wyckoff's Market Rating: 6.5.