Gold, Silver Still Feeling The Heat of Surging Stocks

Gold, Silver Still Feeling The Heat of Surging Stocks

Date: 29/04/2019

Jim Wyckoff Monday April 29, 2019 13:12

Kitco News

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(Kitco News) – Gold and silver prices are moderately lower in early-afternoon U.S. trading Monday. Bull-market moves in world equities markets, led by U.S. stock indexes that are at or near record or multi-month highs, continue to squelch the safe-haven metals markets. June gold futures were last down $8.00 an ounce at $1,280.90. May Comex silver was last down $0.17 at $14.835 an ounce.

Palladium futures prices are getting smacked hard Monday, with June futures down more than $85.00 an ounce. No fresh fundamental news could be found to explain the steep downdraft, which is most likely chart-based selling pressure that included sell stop orders being triggered when prices dropped below key support at the $1,400.00 level. June palladium futures were last down $87.20 an ounce at $1,358.90.

Asian and European stock indexes were narrowly mixed in more subdued trading overnight. U.S. stock indexes are firmer in midday trading. There continues to be little activity on the geopolitical front to scare the stock market bulls, making for a generally calmer and quieter trading environment, which is negative for safe-haven gold and silver prices. The U.S. stock indexes are being boosted in part by upbeat corporate earnings reports recently released.

It will likely be a busier trading week this week, as the U.S. economic data pace picks up, including the Federal Open Market Committee (FOMC) meeting that begins Tuesday morning and ends Wednesday afternoon with a statement and a press conference from Fed Chairman Jerome Powell. No change in U.S. monetary policy is expected at this meeting.

U.S. corporate earnings reports will also continue to be released this week.

U.S.-China trade talks also resume this week, with U.S. officials traveling to Beijing. Most of the marketplace is optimistic the U.S. and China will reach a plausible trade deal in the coming weeks.

The key “outside markets” today see the U.S. dollar index trading slightly down on profit taking after hitting a two-year high last Friday. Meantime, Nymex crude oil prices are slightly higher on a corrective bounce after prices dropped sharply late last week due in part to remarks from President Trump saying he told OPEC oil prices were too high.

Technically, June gold futures prices closed nearer the session low today. The bears have the overall near-term technical advantage. A nine-week-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 last week’s high of $1,290.90 and then at $1,300.00. First support is seen at $1,275.00 and then at last week’s low of $1,267.90. Wyckoff’s Market Rating: 3.5.

May silver futures prices closed near the session low today. The silver bears have the overall near-term technical advantage. A nine-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 April high of $15.31 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 last week’s high of $15.04 and then at $15.25. Next support is seen at the April low of $14.70 and then at $14.50. Wyckoff’s Market Rating: 3.5.

May N.Y. copper closed up 85 points at 289.30 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage amid recent choppy trading at higher price levels. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the April high of 299.55 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 290.00 cents and then at last week’s high of 293.25 cents. First support is seen at last week’s low of 285.65 cents and then at 283.45 cents. Wyckoff’s Market Rating: 6.5.

By Jim Wyckoff