Gold Slightly Down Amid Improved Risk Appetite

(Kitco News) - Gold prices were ending a quieter U.S. day session slightly lower Thursday, as trader and investor attitudes have improved a bit this week, as evidenced by gains in most world stock markets. The gold market bulls are maintaining their overall near-term technical advantage, which is prompting the chart-based buyers to step in an buy dips. June Comex gold was last down $1.10 an ounce at $1,282.50. May Comex silver was last down $0.197 at $17.975 an ounce.

The world marketplace is still very aware of geopolitical tensions between the U.S. and North Korea, and the U.S. and Russia. U.S. Secretary of State Rex Tillerson on Wednesday afternoon took a very hard line on Iran, too. Tillerson said the days of a passive U.S. stance against regimes like Iran and North Korea are over. The hawkish U.S. posturing against its world adversaries is bullish for safe-haven gold.

The first round of the French presidential elections will be held this 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. The very existence of the European Union could hinge upon elections in the European Union this year.

The key outside markets on Thursday saw the U.S. dollar indexx weaker. Meantime, Nymex crude oil prices were near steady in afternoon trading. Rising U.S. crude oil production levels recently have dropped oil prices from their recent highs.

Technically, June gold futures prices closed near mid-range today. 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 Wednesday’s high of $1,292.70 and then at this week’s high of $1,297.40. First support is seen at this week’s low of $1,275.40 and then at 1,268.10. Wyckoff's Market Rating: 6.5

May silver futures prices closed nearer the session low. The silver market bulls still have the overall near-term technical advantage but have faded this week. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $18.655 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 $18.22 and then at $18.435. Next support is seen at today’s low of $17.845 and then at $17.735. Wyckoff's Market Rating: 6.0.

May N.Y. copper closed up 75 points at 254.20 cents today. Prices closed nearer the session high on short covering after hitting a 3.5-month low on Wednesday. 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 Wednesday’s high of 256.35 cents and then at 260.00 cents. First support is seen at this week’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.)