Gold, Silver Prices Slightly Down On Scant Risk Aversion, Firmer Greenback

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(Kitco News) - Gold andsilver prices ended the U.S. day session with modest losses Monday. Waning riskaversion in the market place early this week-evidenced by a solid rally in theU.S. stock market today--worked against the safe-haven metals. Also, a firmerU.S. dollar index to start the trading week was a negative element for themetals markets. April Comex gold futures were last down $2.60 an ounce at $1,320.80.May Comex silver was last down $0.041 at $16.425 an ounce.

Thethreat of a global trade war did prompt some safe-having buying in the gold andsilver markets in overnight trading, after U.S. President Trump late last weekannounced he was slapping import tariffs on steel and aluminum. However, as theU.S. day session progressed, those worries seemed to subside as the stockmarket rallied.

Italianelections on Sunday that produced no clear winner also threw some uncertaintyinto the marketplace. Italy is the European Union’s third-largest economy.However, traders and investors did not view this matter as significantlymarkets-moving-at least not for now.

Theother key outside market on Monday morning saw Nymex crude oil prices higherand trading just above $62.00 a barrel. If the oil market can stabilize andstart to trend higher again, the precious metals market would likely see somebuying support develop. Crude oil is arguably the leader of the raw commoditysector.

Technically,Aprilgold futures prices closed nearer the session low today. The gold bullsand bears are on a level overall near-term technical playing field. However,prices are in a six-week-old downtrend on the daily bar chart. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at last week’s high of $1,342.90. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,300.00. First resistance is seen at today’s high of $1,328.90 andthen at $1,335.00. First support is seen at #1,315.00 and then at $1,309.00.Wyckoff's Market Rating: 5.0

May silver futures prices closed nearer the session low and scored a bearish “outsideday” down on the daily bar chart. The silver bears have the overall near-termtechnical advantage. Prices are in a six-week-old downtrend on the daily barchart. Silver bulls' next upside price breakout objective is closing pricesabove solid technical resistance at the February high of $17.04 an ounce. Thenext downside price breakout objective for the bears is closing prices belowsolid support at $16.00. First resistance is seen at today’s high of $16.62 andthen at last week’s high of $16.785. Next support is seen at today’s low of$16.37 and then at last week’s low of $16.16. Wyckoff's Market Rating: 3.0.

MayN.Y. copper closed up 50 points at 312.95 cents today. Prices closed nearer thesession high today. The copper bulls have the overall near-term technicaladvantage, but have faded recently. Copper bulls' next upside price objectiveis pushing and closing prices above solid technical resistance at the Februaryhigh of 329.05 cents. The next downside price objective for the bears isclosing prices below solid technical support at the February low of 304.65cents. First resistance is seen at 314.75 cents and then at 318.60 cents. Firstsupport is seen at today’s low of 309.55 cents and then at 307.50 cents.Wyckoff's Market Rating: 6.0.

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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