Gold Down On Profit Taking, Bearish Outside Market Forces

(Kitco News) - Gold prices were ending the U.S. day session lower Wednesday. Risk aversion in the world marketplace has receded a bit at mid-week and that’s a negative for the safe-haven metal. The outside markets were bearish for the precious metals on this day as the U.S. dollar index was higher and crude oil prices were lower. Generally higher world stock markets Wednesday also worked against the gold market. Some chart consolidation and profit-taking from the shorter-term futures traders were featured in gold and silver markets after both scored five-month highs earlier this week. June Comex gold was last down $10.90 an ounce at $1,283.40. May Comex silver was last down $0.077 at $18.195 an ounce.

Still on the front burner of the world marketplace are geopolitical concerns regarding the U.S. and North Korea stand-off, and U.S.-Russia relations. U.K. Prime Minister Theresa May surprised the marketplace on Monday by calling for snap general elections in June. The first round of the French presidential elections will be held 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 remains an underlying bullish element for the safe-haven gold market.

The key outside markets on Wednesday saw the U.S. dollar index firmer on a mild corrective bounce from recent selling pressure. Meantime, Nymex crude oil prices were down on notions of increasing U.S. oil production and supplies.

Technically, June gold futures prices closed near mid-range and saw profit taking. Prices are still in a five-week-old uptrend on the daily bar chart. The gold bulls still 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 $1,260.00. First resistance is seen at today’s high of $1,292.70 and then at this week’s high of $1,297.40. First support is seen at today’s low of $1,275.40 and then at 1,268.10. Wyckoff's Market Rating: 6.5

May silver futures prices closed near mid-range. 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 $18.325 and then at $18.435. Next support is seen at $18.00 and then at $17.735. Wyckoff's Market Rating: 6.0.

May N.Y. copper closed down 20 points at 252.85 cents today. Prices closed near mid-range and hit a 3.5-month low today. The copper bears have the 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 270.00 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 256.35 cents and then at 260.00 cents. First support is seen at today’s low of 249.40 cents and then at 245.60 cents. Wyckoff's Market Rating: 4.0.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)