Gold Prices Lifted By Rising Oil Prices, Weaker Greenback

(Kitco News) - Gold prices are trading modestly higher in early-afternoon U.S. trading Wednesday. The precious metals are being supported by bullish outside market forces that include a weaker U.S. dollar index and higher crude oil prices today. June gold futures were last up $3.20 an ounce at $1,311.50. May Comex silver was last down $0.006 at $15.205 an ounce.

The afternoon release of the minutes of the last Federal Open Market Committee meeting saw the majority of FOMC members believing U.S. interest rates should remain at present levels the rest of this year, due to expected slower U.S. economic growth in the early part of this year. The members also mentioned uncertainties regarding world trade and Brexit could constrain world economic growth prospects. The FOMC members said inflation remains tame and non-problematic. The markets, including gold and silver, reacted little to this report. The FOMC minutes in the past have sparked higher volatility in markets, in the immediate aftermath of their releases.

The other major U.S. data point today saw the consumer price index for March came in at up 0,4% from February and up 1.9%, year-on-year. The report was expected to be up 0.3% from February and up 1.8%, year-on-year. Markets showed no major reactions to the news.

The European Central Bank held its regular monetary policy meeting Wednesday and left interest rates and policy unchanged, as expected. Traders will closely monitor remarks from ECB President Mario Draghi at his press conference.

Traders and investors in stocks and stock indexes are not quite as upbeat at mid-week, and that’s benefiting the safe-haven metals a bit. President Trump on Monday threatened the European Union with $11 billion in tariffs on EU imports of several products into the U.S. Meantime, the U.S. is still fighting a trade war with China, and an escalation in trade tensions with the EU would mean the world’s three largest economies are sanctioning each other.

The International Monetary Fund on Tuesday forecast slowing global growth, at 3.3% in 2019 versus its last forecast of 3.5% growth, mainly due to the U.S. battling other economies over trade issues.

On the Brexit front, European Union officials will meet today to discuss extending a window for the U.K. to leave the bloc. If no extension is granted by the EU, then this Friday the U.K. would see a “hard exit,” which could roil European stock and financial markets.

The key outside markets today find the U.S. dollar index weaker as prices this week are seeing a corrective pullback from recent gains. Meantime, Nymex crude oil prices are higher, near Tuesday’s five-month high and trading around $64.50 a barrel.

Technically, June gold futures prices closed nearer the session high today. The bulls have the overall near-term technical advantage. A six-week-old downtrend line on the daily bar chart is on the verge of being negated. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,330.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,284.90. First resistance is seen at $1,320.00 and then at $1,325.00. First support is seen at today’s low of $1,304.70 and then at $1,300.00. Wyckoff's Market Rating: 6.0

May silver futures prices closed near the session high today. The silver bears have the slight overall near-term technical advantage. A six-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $15.65 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at this week’s high of $15.31 and then at $15.50. Next support is seen at this week’s low of $15.075 and then at $15.00. Wyckoff's Market Rating: 4.5.

May N.Y. copper closed down 75 points at 292.65 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. 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 the March low of 283.45 cents. First resistance is seen at this week’s high of 296.20 cents and then at the April high of 298.85 cents. First support is seen at 290.00 cents and then at last week’s low of 288.65 cents. Wyckoff's Market Rating: 6.0.