Gold, Silver Near Steady As Bulls Work To Stabilize Markets

(Kitco News) - Gold and silver prices were near steady levels in early-afternoon U.S. tradingWednesday. Gold market bulls are fighting to hold the yellow metal abovecritical chart support at $1,300.00, and they have been successful so far,which has stabilized the market for the time being. June Comex gold futureswere last down $0.50 an ounce at $1,313.20. July Comex silver was last up $0.073at $16.545 an ounce.

Today’sU.S. producer price index for April came in at up 0.1% from March. The “core”rate that excludes food and energy was up 0.2%. Both numbers were forecast tocome in at up 0.2%, month-on-month. The gold and silver markets were notimpacted by this report.

Worldstock markets were mixed to firmer today. U.S. stock indexes are also higher inafternoon dealings. The lack of risk aversion in the marketplace at present isworking against the safe-haven gold and silver markets.

The“outside markets” today find Nymex crude oil prices solidly higher, at a new3.5-year high, and trading above $71.00 a barrel. Meantime, the U.S. dollar index is lower but did hit another 4.5-month high overnight.

Technically,the gold bulls and bears are on a level overall near-term technical playingfield. A close below major psychological support at $1,300.00 would open thedoor to a larger leg down in prices in the near term. However, right now itappears that strong support level will hold, for now. Gold bulls' next upsidenear-term price breakout objective is to produce a close above solid technicalresistance at $1,337.60. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,300.00. Firstresistance is seen at this week’s high of $1,320.10 and then at $1,325.00.First support is seen at the May low of $1,302.30 and then at $1,300.00.Wyckoff's Market Rating: 5.0

Thesilver bears have the overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at $17.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the December low of $15.805.First resistance is seen at today’s high of $16.655 and then at $16.75. Nextsupport is seen at this week’s low of $16.335 and then at the May low of$16.07. Wyckoff's Market Rating: 3.5.

JulyN.Y. copper closed down 25 points at 305.65 cents today. Prices closed nearmid-range today. The copper bulls and bears are on a level overall near-termtechnical playing field. Copper bulls' next upside price objective is pushingand closing prices above solid technical resistance at the April high of 321.80cents. The next downside price objective for the bears is closing prices belowsolid technical support at the March low of 295.85 cents. First resistance isseen at this week’s high of 310.45 cents and then at last week’s high of 312.15cents. First support is seen at this week’s low of 301.40 cents and then at00.00 cents. Wyckoff's Market Rating: 5.0.

 

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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