Better Risk Appetite Dings Gold, Silver Bulls

(Kitco News) - Gold and silver prices are moderately lower in early-afternoon U.S. trading Monday. The safe-haven metals are pressured by upbeat attitudes among traders and investors to start the trading week. April gold futures were last down $5.00 an ounce at $1,327.80. May Comex silver was last down $0.099 at $15.82 an ounce.

U.S. stock indexes hit three-month highs today and are trending solidly higher, to underscore positive attitudes in the marketplace that are a negative for the safe-haven metals. Asian and European stock markets were also mostly up overnight, with China’s shares sharply higher and posting their biggest gains in almost four years. Traders and investors worldwide are cheered by the substantial progress achieved in the U.S.-China trade talks that have been going on the past few weeks. On Sunday, President Trump tweeted that he is delaying the originally imposed early-March deadline for new U.S. tariffs on China’s imports, because of the progress made so far.

The key outside markets today see the U.S. dollar index slightly firmer. Nymex crude oil prices are sharply down and trading around $55.25 a barrel. These two key “outside markets” were also in a bearish daily posture for the precious metals today.

Technically, April gold futures prices closed nearer the session low on more profit taking after hitting a 10-month high last week. The bulls still have the firm overall near-term technical advantage. There are still no early chart clues that a market top is close at hand. A 3.5-month-old price uptrend is still in place on the daily bar chart. 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 February low of $1,304.70. First resistance is seen at today’s high of $1,334.90 and then at $1,340.00. First support is seen at Friday’s low of $1,323.80 and then at $1,320.00. Wyckoff's Market Rating: 6.5

May silver futures prices closed near the session low on profit taking after closing at a seven-month high last week. The silver bulls still have the overall near-term technical advantage. Prices are in a 3.5-month-old price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $16.295 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the February low of $15.545. First resistance is seen at today’s high of $16.06 and then at today’s high of $16.175. Next support is seen at $15.85 and then at $15.75. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed down 45 points at 294.35 cents today. Prices closed near the session low on mild profit taking after hitting an eight-month high early on. The copper bulls have the overall near-term technical advantage. Prices have been trending higher for two months. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at today’s high of 297.75 cents and then at 300.00 cents. First support is seen at 292.50 cents and then at 290.00 cents. Wyckoff's Market Rating: 6.5.