Gold Down On More Profit Taking, Solid Rebound In U.S. Dollar

(Kitco News) - Gold prices ended lower and near the daily low Thursday. The precious metal saw more profit-taking pressure from recent gains, as well as a downside technical correction. A solid rebound in the U.S. dollar index from its early-week low also worked against the precious metals markets today. April Comex gold was last down $8.80 an ounce at $1,244.90. May Comex silver was last down $0.042 at $18.21 an ounce.

An impressive bounce-back in the U.S. stock market the past couple sessions, following recent selling pressure, also favors the gold bears, as it appears risk appetite is quickly returning to the world market place after some worries that the “Trump trade” may have run its course.

The key outside markets on Thursday saw the U.S. dollar index higher. The index is seeing a solid rebound from a 3.5-month low hit earlier this week and the bulls have gained technical momentum. Meantime, Nymex crude oil prices were higher and hit a three-week high today. The oil bulls have gained upside momentum this week, to begin to suggest this market has put in a near-term bottom. 

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Technically, April gold futures closed near the session low today. The gold bulls have lost their 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 the February high of $1,264.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at $1,250.00 and then at today’s high of $1,253.60. First support is seen at $1,240.00 and then at $1,230.00. Wyckoff's Market Rating: 5.0

May silver futures prices closed near mid-range today on profit taking. The silver market bulls still 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 today’s high of $18.315 and then at $18.54. 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 down 35 points at 267.40 cents today. Prices closed nearer the session low 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 today’s high of 271.70 cents. First support is seen at 265.00 and then at 261.50 cents. Wyckoff's Market Rating: 5.5.