Gold Weaker On Strong USDX; Losses Limited By Lower U.S. Stocks

(Kitco News) - Gold prices are slightly lower in midday U.S. trading Thursday. Gold and silver prices dipped to nine-week lows overnight. A rally in the U.S. dollar index, which hit a 2.5-month high today, pressured the precious metals markets. However, the safe-haven metals saw limited selling as the U.S. stock market sold off today. April gold futures were last down $1.60 an ounce at $1,286.00. May Comex silver was last down $0.05 at $15.035 an ounce.

Today's European Central Bank regular monetary policy meeting saw the ECB say it would not change interest rates in 2019, but did make a surprise announcement of providing more liquidity to banks to stimulate more lending. The ECB was not expected to change its interest rates but the new monetary stimulus comes earlier than many expected. The Euro currency dropped on the news, while the U.S. dollar index rallied.

Asian and European stock markets were mostly lower overnight. On the U.S.-China trade dispute front, some downbeat comments from a U.S. trade official regarding the ability of the world's two largest economies to come to an agreement has somewhat dented worldwide trader and investor risk appetite.

The U.S. March jobs report from the Labor Department is due out Friday morning. That's arguably the most important U.S. economic data point of the month. The key non-farm payrolls number is forecast to come in at up 180,000. The ADP national employment report for February, released on Wednesday, showed a rise of 183,000, which was close to market expectations for a rise of 185,000.

The other key outside market today sees Nymex crude oil prices are firmer and trading around $56.50 a barrel.

Technically, April gold futures prices closed near mid-range today. The bulls and bears are on a level overall near-term technical playing field but the bears have momentum on their side. 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 $1,291.80 and then at this week's high of $1,298.10. First support is seen at today's low of $1,280.80 and then at $1,275.00. Wyckoff's Market Rating: 5.0

May silver futures prices closed nearer the session low and hit another nine-week low today. The silver bears have the overall near-term technical advantage. However, the market is short-term oversold, technically. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at $15.175 and then at this week's high of $15.295. Next support is seen at $14.85 and then at $14.75. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed down 115 points at 290.70 cents today. Prices closed nearer the session low today on profit taking. The copper bulls still 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 292.50 cents and then at this week's high of 295.50 cents. First support is seen at today's low of 289.45 cents and then at 287.25 cents. Wyckoff's Market Rating: 6.5.