Gold, Silver Prices Sink Amid Higher USDX, Profit Taking

(Kitco News) - Gold andsilver prices ended the U.S. day session lower Tuesday, on profit taking fromrecent gains. Gold prices hit a five-week high overnight, while silver notcheda three-week high. A rebound in the U.S. dollar index today also worked againstthe precious metals market bulls. April Comex gold futures were last down $12.70an ounce at $1,342.40. May Comex silver was last down $0.149 at $16.535 anounce.

Worldstock markets were mostly higher overnight. U.S. stock indexes were mixed tofirmer in early afternoon trading today. Risk appetite has returned to themarketplace early this week amid signs the U.S. and China will attempt to workout their trade disagreements. That’s a bearish element for the safe-haven goldand silver markets, which had been supported recently on worries about a worldtrade war.

Thekey “outside markets” on Tuesday saw the U.S. dollar index higher on acorrective bounce after hitting a five-week low overnight. Meantime, Nymex crude oil prices were slightly lower and trading just above $65.00 a barrel.

Technically,Aprilgold futures prices closed nearer the session low today. Prices alsoscored a bearish “outside day” down on the daily bar chart. The gold bullsstill have the overall near-term technical advantage. Gold bulls' next upsidenear-term price breakout objective is to produce a close above solid technicalresistance at the January high of $1,370.50. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at$1,320.00. First resistance is seen at $1,350.00 and then at today’s high of$1,356.80. First support is seen at today’s low of $1,339.60 and then at$1,335.00. Wyckoff's Market Rating: 6.0

Maysilver futures prices closed nearer the session low and hit a three-week highearly on. Prices also scored a bearish “outside day” down on the daily barchart. The silver bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the March lowof $16.10. First resistance is seen at today’s high of $16.81 and then at theMarch high of $16.895. Next support is seen at today’s low of $16.465 and thenat $16.33. Wyckoff's Market Rating: 4.0.

MayN.Y. copper closed up 255 points at 299.60 cents today. Prices closed nearmid-range today and saw short covering after hitting a six-month low on Monday.The copper bears have the slight near-term technical advantage. Prices are in asix-week-old downtrend on the daily bar chart. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at310.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at the September low of 293.25 cents. First resistanceis seen at today’s high of 302.40 cents and 305.00 cents. First support is seenat today’s low of 297.75 cents and then at 295.00 cents. Wyckoff's MarketRating: 4.0.

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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