Gold Up On Bargain Hunting, Some Weaker U.S. Data

(Kitco News) - Gold prices erased modest early losses Monday to end slightly higher on some bargain buying. Some weaker-than-expected U.S. economic data that fell into the camp of the monetary policy doves, who want to see a slower pace of U.S. interest rate increases, also helped out the precious metals bulls today. June Comex gold was last up $3.00 an ounce at $1,254.20. May Comex silver was last down $0.051 at $18.205 an ounce.

At mid-morning the U.S. construction spending report for February showed a gain of only 0.8% when a rise 1.2% was expected. Also at the same time, the U.S. March ISM manufacturing report showed a reading of 57.2 versus 57.7 in February. Gold prices pushed above unchanged in the immediate aftermath of that economic data.

While world stock markets were mostly firmer Monday, U.S. stock indexes were weaker in early afternoon New York trading. The weaker U.S. stock market was also a bullish daily element for the competing asset class gold.

The world marketplace will closely monitor this week’s meeting between U.S. President Donald Trump and Chinese leader Xi Jinping. The key U.S. employment report is also out on Friday morning.

The key outside markets on Monday saw the U.S. dollar index higher. The index has seen a solid rebound from a 3.5-month low hit last week and the bulls have the slight overall near-term technical advantage. Meantime, Nymex crude oil prices were weaker. However, the oil bulls still have some upside technical momentum to suggest a near-term market bottom is in place. 

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Technically, June gold futures prices closed nearer the session high today. The gold bulls 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 the February high of $1,268.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at last week’s high of $1,264.20 and then at $1,268.10. First support is seen at today’s low of $1,246.40 and then at last week’s low of $1,241.50. Wyckoff's Market Rating: 5.5

May silver futures prices closed near mid-range today and saw mild 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 last week’s high of $18.315 and then at $18.54. Next support is seen at $18.00 and then at last week’s low of $17.78. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed down 470 points at 260.50 cents today. Prices closed near the session low today. The copper bulls and bears are back on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 271.70 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 263.00 cents and then at today’s high of 266.05 cents. First support is seen at 260.00 and then at 258.00 cents. Wyckoff's Market Rating: 5.0.