Gold Slightly Down, But Bulls Appear To Have Stopped The Bleeding

(Kitco News) - Gold prices were ending the U.S. day session slightly lower Thursday, on some chart consolidation after this week’s stronger selling pressure that did produce some near-term technical damage. The gold market is now short-term oversold, technically, and due for a corrective bounce early next week. April Comex gold futures were last down $2.00 an ounce at $1,322.20. May Comex silver was last up $0.022 at $16.275 an ounce.

World stock markets were mostly higher Thursday. Still, world stock markets this week became wobbly again, which favors the stock market bears and still suggests major market tops are in place for the stock indexes.

The shaky global stocks markets this week boosted safe-haven U.S. Treasury prices to multi-week highs. Yet, gold and silver bulls were perplexed their metals sold off. However, it’s my bias the gold and silver markets’ prices would benefit from continued higher volatility in world equity markets in the near term.

The key “outside markets” on Thursday saw the U.S. dollar index slightly higher. Meantime, Nymex crude oil prices were modestly up and trading just below $65.00 a barrel.

Technically, April gold bulls have lost their overall near-term technical advantage. Prices today were headed for a bearish weekly low close in U.S. trade terms. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at $1,330.00 and then at $1,335.00. First support is seen at $1,320.00 and then at $1,309.00. Wyckoff's Market Rating: 5.0

May silver futures bears have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.895 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at Wednesday’s high of $16.56 and then at this week’s high of $16.81. Next support is seen at the March low of $16.10 and then at $16.00. Wyckoff's Market Rating: 3.0.