Gold, Silver Gain On Declining Dollar, Bargain-Basement Buying

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(Kitco News) - Gold andsilver prices endedthe U.S. day session solidly higher Tuesday. A sell-off in the U.S. dollar index on this day prompted renewed buying interest in the precious metals. Afeature in the gold and silver futures today was bargain hunting followingrecent selling pressure. Also, short covering, or the buying back of previouslysold (short) positions, by shorter-term traders, was featured in the gold andsilver futures markets today. Importantly, an uptick in investor risk appetitetoday did not negatively impact safe-haven gold and silver. April Comex gold futures were last up $15.40 an ounce at $1,335.40. May Comex silver was last up$0.368 at $16.78 an ounce.

Worldstock markets, including the U.S. stock indexes, were mostly higher today,partly on hopes that the U.S. plans for import tariffs on steel and aluminumwill be rolled back, or at least scaled way down. Several U.S. lawmakers,including the Speaker of the House, have spoken out against President Trump'sprotectionist initiative that surprised the marketplace.

Alsoboosting investor risk appetite today is news overnight that North Korea hasreportedly made an overture to South Korea regarding its possibledenuclearization. Details are sketchy at this time, but the news is a positivefor the world marketplace.

Theother key outside market on Tuesday saw Nymex crude oil prices near steady andtrading just below $63.00 a barrel.

Technically,Aprilgold futures prices closed nearer the session high today. The gold bullshave regained the slight overall near-term technical advantage. Gold bulls'next upside near-term price breakout objective is to produce a close abovesolid technical resistance at $1,350.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,300.00. First resistance is seen at today's high of $1,339.90 and then at lastweek's high of $1,342.90. First support is seen at #1,325.00 and then at thisweek's low of $1,318.30. Wyckoff's Market Rating: 5.5

Maysilver futures prices closed nearer the session high today on short coveringand bargain hunting. The silver bears still have the slight overall near-termtechnical advantage. Silver bulls' next upside price breakout objective isclosing prices above solid technical resistance at the February high of $17.04an ounce. The next downside price breakout objective for the bears is closingprices below solid support at $16.00. First resistance is seen at today's highof $16.895 and then at $17.00. Next support is seen at $16.50 and then at thisweek's low of $16.37. Wyckoff's Market Rating: 4.5.

MayN.Y. copper closed up 325 points at 316.05 cents today. Prices closed nearerthe session high today. The copper bulls have the overall near-term technicaladvantage. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at the February high of 329.05 cents.The next downside price objective for the bears is closing prices below solidtechnical support at the February low of 304.65 cents. First resistance is seenat today's high of 317.80 cents and then at 320.00 cents. First support is seenat today's low of 312.65 cents and then at this week's low of 309.55 cents.Wyckoff's Market Rating: 6.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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