Gold Bulls Get No Help From Dovish Fed Chairman Testimony

(Kitco News) - Gold prices are modestly down in early-afternoon U.S. trading Tuesday. A dovish monetary policy presentation to the Senate by Federal Reserve Chairman Jerome Powell could not give gold and silver prices any boost. The safe-haven metals bulls need a new fundamental news spark, amid the recent upbeat trader and investor attitudes. April gold futures were last down $2.40 an ounce at $1,327.00. May Comex silver was last down $0.005 at $15.825 an ounce.

The U.S. economic news of the day Tuesday was Powell’s morning testimony on the U.S. economy to the Senate Banking Committee. Most market watchers reckoned Powell would sound a dovish tone on monetary policy and that’s what he delivered. He reiterated the Fed will remain “patient” on any U.S. monetary policy adjustments, and said the U.S. economy remains healthy, albeit with a few concerns on the global front. Powell did not deliver any surprises to the marketplace. He speaks to the House of Representatives on Wednesday.

Asian and European stock markets were mostly weaker overnight, on corrective pullbacks from recent gains. U.S. stock indexes are also pointed toward slightly lower openings when the New York day session begins. The U.S. indexes hit three-month highs on Monday and were trading near steady at midday today,amid generally upbeat trader and investor attitudes and with no major geopolitical fires presently burning.

The British pound was supported today by reports Prime Minister Theresa May will work on another Brexit deal and may delay the March 29 European Union exit date, including possibly holding another referendum on the matter in order to avoid a “no-deal Brexit.” The matter has not impacted gold, but further problems could support the metal.

The key outside markets today see the U.S. dollar index modestly lower. Nymex crude oil prices are firmer and trading just below $56.00 a barrel. Oil prices fell sharply Monday, in part on a tweet from President Trump saying oil prices are too high and could hurt the global economy.

Technically, April gold futures prices closed nearer the session low on more mild 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 this week’s high of $1,334.90 and then at $1,340.00. First support is seen at $1,323.30 and then at $1,320.00. Wyckoff's Market Rating: 6.5

May silver futures prices closed near mid-range today. 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 this week’s high of $16.06 and then at $16.175. Next support is seen at today’s low of $15.835 and then at $15.75. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed up 55 points at 295.45 cents today. Prices closed nearer the session high and closed at an eight-month high close today. 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 this week’s high of 297.75 cents and then at 300.00 cents. First support is seen at today’s low of 293.70 cents and then at 290.00 cents. Wyckoff's Market Rating: 6.5.