Gold, Silver Prices Sink To 4-Mo. Lows On Strong Dollar, U.S. Equities

(Kitco News) - Gold and silver prices are down in midday U.S. trading Tuesday and fell to four-month lows. Gold prices have moved well off their daily lows, however. A solid rally in the U.S. dollar index today and more gains in the U.S. stock market that have the indexes at or near record highs, are the main bearish elements working against the precious metals markets recently. The safe-haven metals continue to be hamstrung by not much risk aversion in the world marketplace at present. June gold futures were last down $2.90 an ounce at $1,274.50. May Comex silver was last down $0.195 at $14.78 an ounce.

With no major geopolitical hotspots in play at present, focus of traders and investors is on corporate earnings reports. U.S. earnings have been generally upbeat so far.

Rising oil prices that saw Nymex crude push above $66.00 a barrel and to a six-month high today, with Brent crude above $74.00, are getting some more attention in the marketplace. More gains in crude oil would likely prompt some keener concerns about problematic inflation, as well as economic growth concerns. Oil’s surge this week is mainly due to the U.S. not renewing waivers it had given to some countries on sanctioned Iranian crude oil imports. And with oil being arguably the leader of the raw commodity sector, crude’s rally should at least be limiting selling interest in the metals.

The other key outside market today finds the U.S. dollar index solidly up and not far below the for-the-move highs scored a few months ago. The strong greenback makes metals that are priced in U.S. dollars on the world market more expensive to purchase in non-U.S. currency.

Technically, June gold futures prices closed near mid-range today. The bears have the overall near-term technical advantage. A two-month-old downtrend line on the daily bar chart is in place. 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 $1,250.00. First resistance is seen at this week’s high of $1,281.90 and then at $1,285.00. First support is seen at today’s low of $1,267.90 and then at $1,260.00. Wyckoff's Market Rating: 3.5

May silver futures prices closed nearer the session low today. The silver bears have the overall near-term technical advantage. A two-month-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 $15.15 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 $15.00 and then at this week’s high of $15.04. Next support is seen at today’s low of $14.70 and then at $14.60. Wyckoff's Market Rating: 3.0.

May N.Y. copper closed down 45 points at 289.70 cents today. Prices closed near mid-range and hit a three-week low today on more profit taking after hitting a 9.5-month high last week. The copper bulls still 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 293.25 cents and then at 295.00 cents. First support is seen at today’s low of 287.75 cents and then at 285.00 cents. Wyckoff's Market Rating: 6.5.