Gold Ends Choppy Session A Bit Weaker On Profit Taking

(Kitco News) - Gold prices ended the U.S. day session modestly lower Thursday, on some mild profit-taking after recent gains pushed the market to a three-week high earlier today. April Comex gold was last down $3.30 an ounce at $1,246.40. May Comex silver was last up $0.027 at $17.605 an ounce.

Focus of the world marketplace is on an expected late-Thursday vote by the U.S. House of Representatives on a bill to abolish the Affordable Care Act, also known as Obamacare. There are still serious doubts whether the Republicans can muster enough votes to strike down Obamacare. A failure of the House to repeal Obamacare would throw into serious question President Trump’s ambitious pro-business plans of cutting taxes and regulations. There is also the chance that the Republicans could delay the vote if they feel they don’t have enough votes to pass the bill.

The key outside markets on Thursday saw the U.S. dollar index trade slightly firmer on short covering after hitting a six-week low on Wednesday. The greenback bears still have some technical momentum as prices are in a fledgling downtrend on the daily bar chart. Meantime, Nymex crude oil prices were weaker and hovering not far above this week’s four-month low. The specter of growing world oil supplies, especially ramped up U.S. shale-oil production, is keeping crude oil prices tamped down.

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Technically, April gold futures prices closed near mid-range today. The gold bulls and bears are on a level near-term technical playing field but the bulls still have some momentum on their side. 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 $1,217.50. First resistance is seen at today’s high of $1,253.30 and then at $1,260.00. First support is seen at today’s low of $1,242.70 and then at $1,235.00. Wyckoff's Market Rating: 5.0

May silver futures prices closed near mid-range. While the silver market bears still have the slight overall near-term technical advantage, the recent rebound suggests a near-term market bottom is in place and that prices can trend at least sideways in the near term. 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 $16.50. First resistance is seen at today’s high of $17.71 and then at $17.82. Next support is seen at this week’s low of $17.34 and then at $17.23. Wyckoff's Market Rating: 4.5.

May N.Y. copper closed up 185 points at 264.80 cents today. Prices closed near the session high today. The copper bulls and bears are on a level overall near-term technical playing field. Prices are in a five-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 272.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 255.85 cents. First resistance is seen at this week’s high of 270.00 cents and then at 272.50 cents. First support is seen at today’s low of 261.50 and then at this week’s low of 258.75 cents. Wyckoff's Market Rating: 5.0.