Gold, Silver Succumb To Rallying Greenback

(Kitco News) - Gold and silver prices are weaker in early-afternoon U.S. trading Thursday. Gold prices dropped to a five-week low, while silver hit a three-week bottom. Slight gains seen at the start of North American trading were eroded by late-morning as the U.S. dollar index pushed higher and hit another 3.5-month high. Gains in U.S. stock indexes amid an improvement in investor risk appetite today also worked against the safe-haven precious metals. June Comex gold futures were last down $4.60 an ounce at $1,318.20. May Comex silver was last down $0.047 at $16.455 an ounce.

The other key “outside market” on Thursday afternoon sees Nymex crude oil prices near steady and trading just above $68.00 a barrel. Oil bulls have the solid near-term technical advantage, which is a bullish underlying element for the metals markets, as well as other raw commodities.

Technically, the gold bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon to avoid more serious near-term chart damage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,309.30. First resistance is seen at today’s high of $1,328.00 and then at $1,333.80. First support is seen at today’s low of $1,316.20 and then at $1,312.40. Wyckoff's Market Rating: 5.5

The silver bears have regained the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $17.36 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $16.10. First resistance is seen at today’s high of $16.58 and then at $16.75. Next support is seen at today’s low of $16.385 and then at $16.25. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed down 180 points at 311.60 cents today. Prices closed near mid-range. The copper bulls have the overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 314.40 cents and then at this week’s high of 316.75 cents. First support is today’s low of seen at 308.70 cents and then at this week’s low of 307.80 cents. Wyckoff's Market Rating: 6.0.