Gold Weaker On More Profit Taking And Bounces In Stocks, Dollar

(Kitco News) - Gold prices ended the U.S. day session slightly lower Wednesday. Gold and silver markets saw normal, mild corrective pullbacks on the charts following recent good gains that saw gold hit a four-week high and silver hit a three-week high this week. A rebounding U.S. stock market and U.S. dollar index at mid-week are also negatives for the precious metals markets. April Comex gold was last down $1.80 an ounce at $1,253.80. May Comex silver was last down $0.002 at $18.25 an ounce.

There were no major, markets-moving news developments Wednesday. The world marketplace is eyeing the U.S. stock indexes. Traders and investors are wondering if recent losses in stock markets mean the end of the record-setting “Trump rally” that had been in place since the U.S. president was elected in November. Solid rebounds in the U.S. stock indexes Wednesday favored the camp that believes the recent selling pressure in stocks was just a normal downside correction in a bull market that still has legs. How the U.S. stock indexes close on Friday—near the weekly highs or the weekly lows—will provide clues on the future health of the very mature bull market in equities. And the future direction of the U.S. stock market will have a big influence on many other markets, including the precious metals.

The key outside markets on Wednesday saw the U.S. dollar index higher and rebounding from this week’s 3.5-month low. The greenback bears still have the overall near-term technical advantage as prices are still in a downtrend on the daily bar chart. Meantime, Nymex crude oil prices were higher on short covering, but are still trading below $50.00 a barrel. The crude oil bears remain in near-term technical control. 

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Technically, April gold futures prices closed nearer the session high today. The gold bulls still have the slight overall near-term technical advantage. 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 this week’s high of $1,261.00 and then at the February high of $1,264.90. First support is seen at this week’s low of $1,245.50 and then at $1,240.00. Wyckoff's Market Rating: 5.5

May silver futures prices closed near the session high today. Prices Tuesday hit four-week high. The silver market bulls have the slight overall near-term technical advantage. 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 $17.50. First resistance is seen at $18.54 and then at $18.75. Next support is seen at $18.00 and then at this week’s low of $17.78. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed up 15 points at 267.75 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 275.00 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 270.00 cents and then at 272.50 cents. First support is seen at 265.00 and then at Tuesday’s low of 261.50 cents. Wyckoff's Market Rating: 5.5.