Gold Down On Strong ADP Report; FOMC Minutes A Non-Event

(Kitco News) - Gold prices ended the U.S. day session lower Wednesday, in the wake of a robust ADP jobs report and a rallying U.S. dollar index and stock market. Some profit taking from the shorter-term futures traders and chart consolidation were also featured following recent advances. June Comex gold was last down $9.80 an ounce at $1,248.50. May Comex silver was last down $0.088 at $18.235 an ounce.

The afternoon release of the minutes from the last Federal Open Market Committee meeting in mid-March, at which time the Fed raised interest rates, showed nothing new to move the markets. Most FOMC members want to see the Fed’s balance sheet reduced by the end of this year.

The U.S. ADP national employment report for March, released Wednesday morning, showed a much-higher-than-expected rise of 263,000 jobs. The report was forecast to show growth of 180,000 jobs. The report falls into the camp of the U.S. monetary policy hawks, who want to see interest rates rise at a faster pace. The ADP data helped to rally the U.S. dollar index and the U.S. stock market.

Traders and investors will be closely watching the meetings between U.S. President Donald Trump and Chinese leader Xi Jinping on Thursday and Friday. The U.S. employment report is also due out Friday morning.

The key outside markets on Wednesday saw the U.S. dollar trade higher. The index has seen a solid rebound from a 3.5-month low hit last week and the bulls have the overall near-term technical advantage. Meantime, Nymex crude oil prices were modestly higher and hit a four-week high. The oil bulls have upside technical momentum to suggest prices can at least trade sideways, if not sideways to higher, in the near term. 

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Technically, June gold futures prices closed nearer the session low 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 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 today’s high of $1,259.30 and then at the March high of $1,264.20. First support is seen at last week’s low of $1,241.50 and then at 1,230.00. Wyckoff's Market Rating: 5.5

May silver futures prices closed nearer the session low today on profit taking after hitting a four-week high on Tuesday. The silver market bulls have the 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 $18.325 and then at this week’s high of $18.43. Next support is seen at this week’s low of $18.09 and then at $18.00. Wyckoff's Market Rating: 6.0.

May N.Y. copper closed up 745 points at 268.65 cents today. Prices closed nearer the session high today. The copper bulls have regained the 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 today’s high of 269.50 cents and then at 272.50 cents. First support is seen at 265.00 and then at 252.50 cents. Wyckoff's Market Rating: 6.0.