Gold Ends Near Steady As Bulls Try To Stabilize Market

(Kitco News) - Gold prices lost their modest early gains and ended the U.S. day session near unchanged in quieter trading Monday. Some mild short covering in the futures market and bargain hunting in the cash market was offset by the recently weakened near-term technical posture in gold. Last week gold futures lost around $35.00 an ounce. April Comex gold was last up $0.40 an ounce at $1,226.90. May Comex silver was last up $0.10 at $17.84 an ounce.

The key outside markets on Monday were in a bearish posture for the precious metals. The U.S. dollar index trading was modestly higher. The greenback has benefitted recently on increasing ideas of a U.S. interest rate hike coming this month. Meantime, Nymex crude oil futures prices were slightly lower today. Crude prices are near the lower boundary of a recent sideways and choppy trading range.

The precious metals markets could be quieter most of this week, ahead of what is arguably the most important economic report of the week and even the month on Friday--the U.S. employment report for February from the Labor Department. The key non-farm payrolls component of the report is forecast to come in at up around 190,000 workers.

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Technically, April gold futures prices closed nearer the session low today. The gold bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon. A nine-week-old uptrend on the daily bar chart has been negated. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,264.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,237.30 and then at $1,246.60. First support is seen at last week’s low of $1,223.00 and then at $1,217.50. Wyckoff's Market Rating: 5.5

May silver futures prices closed near mid-range today. The silver market bulls still have the slight overall near-term technical advantage, but have faded. A nine-week-old uptrend on the daily bar chart has been negated. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $18.54 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 $18.00 and then at $18.25. Next support is seen at last week’s low of $17.66 and then at $17.50. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed down 435 points at 265.30 cents today. Prices closed nearer the session low and hit a four-week low today. The copper bulls still have the overall near-term technical advantage, but are fading a bit. 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 today’s high of 270.95 cents and then at 273.00 cents. First support is seen at today’s low of 264.60 and then at 262.60 cents. Wyckoff's Market Rating: 6.0.