Gold Sees Choppy, Consolidative Action Following Recent Gains

(Kitco News) - Gold prices were near steady in a choppy, two-sided trading affair in early afternoon action Tuesday. Some normal backing and filling on the charts and profit-taking from the shorter-term futures traders were featured. Selling interest was limited and earlier selling pressure saw traders “buy the dip” due to ongoing worries about geopolitics and amid a slumping U.S. dollar index. June Comex gold was last down $0.10 an ounce at $1,291.80. May Comex silver was last down $0.279 at $18.235 an ounce.

There were no major developments on the geopolitics front Tuesday. However, tensions remain elevated and that’s continuing to support buying interest in the safe-haven gold market. Some talk shows Monday evening put the U.S. and North Korea on the brink of war, or even nuclear war.

In overnight news, U.K. Prime Minister Theresa May surprised the marketplace by calling for snap general elections in June. The British pound jumped higher on the news. 
The first round of the French presidential elections will be held this coming Sunday. The second round will be on May 7. European market watchers are getting more nervous as the French elections approach and polls show tight races. This uncertainty is also bullish for the gold market.

The key outside markets on Tuesday saw the U.S. dollar index trading solidly lower. The greenback bulls have lost their overall near-term technical advantage. Meantime, Nymex crude oil prices were modestly lower 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.

Technically, June gold futures bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. 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 closing prices below solid technical support at $1,268.10. First resistance is seen at Monday’s high of $1,297.40 and then at $1,300.00. First support is seen at Tuesday’s low of $1,280.60 and then at $1,275.00. Wyckoff’s Market Rating: 6.5

May silver bulls have the overall near-term technical advantage, but some profit taking was seen Tuesday. Prices Monday hit a five-month high. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing futures 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 Tuesday’s high of $18.435 and then at this week’s high of $18.655. Next support is seen at $18.415 and then at $18.00 and then at last week’s low of $17.735. Wyckoff's Market Rating: 6.0.