Gold Up Amid Geopolitics, Weaker Greenback

(Kitco News) - Gold prices were ending the U.S. day session modestly higher and scored another five-month high Monday. Heightened geopolitical tensions and a lower U.S. dollar index on this day worked in favor of the safe-haven metal. June Comex gold was last up $2.10 an ounce at $1,290.60. May Comex silver was last down up $0.015 at $18.49 an ounce.

Over the long holiday weekend, the U.S. accused Russia of trying to cover up the recent Syrian chemical attack on its own people. The U.S. said the world’s problems with North Korea are “coming to a head” after a failed North Korean ballistic missile test on Saturday. These matters could become worse before they become better, and that notion continues to boost the gold market.

In other news Monday, China’s first-quarter gross national product came in at a 6.9% annual growth rate, which was the strongest pace in nearly two years. The number was just above market expectations and is also a positive for the precious metals markets. China is a major raw commodity importer, including metals.

The key outside markets on Monday saw the U.S. dollar index solidly lower. The greenback bulls have lost their overall near-term technical advantage. Meantime, Nymex crude oil prices were also weaker on ideas U.S. shale-oil production will continue on the rise. The crude oil bulls do still have the overall near-term technical advantage.

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Technically, June gold futures prices closed nearer the session low after hitting hit another five-month high early on today. Prices have recently pushed above the key 200-day moving average, which is bullish. Prices are in a five-week-old uptrend on the daily bar chart. The gold bulls have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,268.10. First resistance is seen at today’s high of $1,297.40 and then at $1,300.00. First support is seen at last Thursday’s low of $1,283.80 and then at 1,275.00. Wyckoff's Market Rating: 6.5

May silver futures prices closed nearer the session low and did hit a five-month high early on today. 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 $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the April low of $17.735. First resistance is seen at today’s high of $18.655 and then at $18.85. Next support is seen at $18.25 and then at $18.00. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed up 240 points at 259.50 cents today. Prices closed nearer the session high on short covering after hitting a three-month low last week. The copper bears have the slight overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 271.70 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 245.60 cents. First resistance is seen at today’s high of 261.15 cents and then at 263.00 cents. First support is seen at today’s low of 255.65 cents and then at last week’s low of 253.45 cents. Wyckoff's Market Rating: 4.5.