Gold, Silver Prices Lifted By Uptick In Risk Aversion

Gold, Silver Prices Lifted By Uptick In Risk Aversion

Date: 09/04/2019

Jim Wyckoff Tuesday April 09, 2019 12:39

Kitco News

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(Kitco News) – Gold and silver prices are higher in early-afternoon U.S. trading Tuesday. Gold sees moderate gains and silver is slightly up. Some risk aversion has crept back into the marketplace amid new U.S. tariff threats against the European Union. The metals are also supported by a weaker U.S. dollar index early this week. June gold futures were last up $7.10 an ounce at $1,309.00. May Comex silver was last up $0.024 at $15.24 an ounce.

Traders and investors in stocks and stock indexes are a bit more nervous today after President Trump on Monday threatened the European Union with $11 billion in tariffs on EU imports of several products into the U.S. The Trump administration is taking aim at EU subsidies provided to Airbus. U.S. stock indexes were modestly down in midday trading.

The other key outside market today finds Nymex crude oil prices are weaker on mild profit taking after hitting another five-month high of $64.79 overnight. The recent uptrend in oil prices is also a bullish outside market force working in favor of the metals market bulls.

The U.S. economic data pace picks up rapidly on Wednesday and for the rest of the week, including Wednesday afternoon’s FOMC minutes.

Technically, June gold futures prices closed nearer the session high. The bulls have the overall near-term technical advantage. However, a six-week-old downtrend line 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 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 today’s high of $1,310.40 and then at $1,313.00. First support is seen at $1,300.00 and then at this week’s low of $1,295.50. Wyckoff’s Market Rating: 6.0.

May silver futures prices closed near mid-range 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 today’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 up 40 points at 293.60 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 today’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.

By Jim Wyckoff