Bulls Working To Stabilize Gold, Silver Markets

Date: 02/04/2019

Jim Wyckoff Tuesday April 02, 2019 13:13

Kitco News

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(Kitco News) – Gold and silver prices are near steady in early-afternoon U.S. trading Tuesday. Gold prices hit a three-week low overnight, while silver fell to a three-month low. A higher U.S. dollar index that is closing in on its for-the-move high scored in March continues to limit buying interest in the precious metals markets. June gold futures were last up $0.70 an ounce at $1,294.90. May Comex silver was last down $0.054 at $15.05 an ounce.

Asian and European stock indexes were mixed to slightly up in quieter trading overnight, following Monday’s good gains. U.S. stock indexes are mixed at midday. The U.S. indexes are at or near their recent multi-month highs and are enjoying solid price uptrends on the charts. That’s also bearish for the competing asset class, safe-haven metals.

Australia’s central bank, the Royal Bank of Australia, on Tuesday left its monetary policy unchanged at the bank’s regular meeting. The RBA did warn that the Aussie economy is not meeting its inflation target and doing so may take a while. This continues a theme of very low, and possibly even problematic, inflation in the major economies of the world. Low inflation is the enemy of raw commodity market bulls.

The other key outside market today sees Nymex crude oil prices higher, and hitting another 4.5-month high overnight and are trading above $62.00 a barrel.

Technically, June gold futures prices closed near mid-range today. The bulls still have the overall near-term technical advantage but have faded badly recently and need to show fresh power soon to avoid more serious chart damage being inflicted. 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 the March low of $1,287.50. First resistance is seen at $1,300.00 and then at $1,305.00. First support is seen at today’s low of $1,289.50 and then at $1,287.50. Wyckoff’s Market Rating: 6.0.

May silver futures prices closed nearer the session high and hit a three-month low early on today. The silver bears have the slight overall near-term technical advantage. A five-week-old downtrend has been re-established 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 $14.50. First resistance is seen at this week’s high of $15.19 and then at $15.315. Next support is seen at today’s low of $14.905 and then at $14.75. Wyckoff’s Market Rating: 4.5.

May N.Y. copper closed down 165 points at 290.80 cents today. Prices closed nearer the session low 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 295.00 cents and then at 297.80 cents. First support is seen at today’s low of 289.70 cents and then at 287.80 cents. Wyckoff’s Market Rating: 6.0.

By Jim Wyckoff