Gold, Silver Prices See Normal Corrective Pullbacks

(Kitco News) - Gold and silver prices are lower in early-afternoon U.S. trading Tuesday, on normal downside corrections following recent gains that pushed prices to multi-week highs recently. Some profit-taking from the shorter-term futures traders was also featured today. April gold futures were last down $8.00 an ounce at $1,314.70. May Comex silver was last down $0.137 at $15.43 an ounce.

Trader and investor risk appetite up-ticked a bit today, which is also a negative for the safe-haven metals. Trading is more subdued early this week, amid a lack of major news to move markets and ahead of key events later this week that include high-level trade talks between the U.S. and China, and gross domestic product data coming from several countries.

A feature in the marketplace recently has been falling government bond yields in the major industrialized countries. U.S. Treasury yields briefly inverted late last week when the short-term 3-month note yield moved above the 10-year note yield. In Germany, government bond yields are now just into negative territory. Worries about economic growth in the major countries, combined with very low inflation, are prompting the falling bond yields (rising prices).

The key outside markets today see the U.S. dollar index slightly higher. Meantime, Nymex crude oil prices are higher and trading around $60.00 a barrel. The stronger greenback is a negative for the metals, but the rallying oil market is a positive for them.

Technically, April gold futures prices closed nearer the session low. The bulls still have the firm overall near-term technical advantage. A three-week-old uptrend is 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 $1,331.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,324.50 and then at $1,331.10. First support is seen at this week’s low of $1,310.60 and then at $1,305.00. Wyckoff's Market Rating: 7.0

May silver futures prices closed nearer the session low on some profit taking from recent gains. The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $14.985. First resistance is seen at this week’s high of $15.59 and then at last week’s high of $15.65. Next support is seen at this week’s low of $15.385 and then at last week’s low of $15.22. Wyckoff's Market Rating: 6.5.

May N.Y. copper closed down 60 points at 285.05 cents today. Prices closed nearer the session low today. Recent solid selling pressure, including last Friday’s bearish weekly low close, suggests this market has topped out. The copper bulls do still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 297.75 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 287.45 cents and then at 290.00 cents. First support is seen at this week’s low of 283.45 cents and then at 281.00 cents. Wyckoff's Market Rating: 6.0.