Gold Down On Heavy Profit-Taking, Better Risk Appetite

(Kitco News) - Gold prices weresharply lower in early-afternoon U.S. trading Thursday. Heavy profit-takingfrom recent gains, from the shorter-term futures traders, was featured today.Fears have at least temporarily eased regarding an imminent U.S. airstrikeagainst Syria. That has rallied the U.S. stock market and in turn pressured thesafe-haven gold and silver markets. The U.S. dollar index is also higher today,which is another bearish element for the precious metals markets. June Comex gold futures were last down $19.60 an ounce at $1,340.40. May Comex silver waslast down $0.253 at $16.515 an ounce.

Anxietyin the world marketplace eased a bit today, regarding any U.S. military strikesoon against Syria, when President Trump has this morning tweeted that thetimeframe of a strike against Syria could be sooner or much later.

Theother key “outside market” on Thursday sees Nymex crude oil prices slightlyweaker on mild profit taking after prices on Wednesday hit a nearly 3.5-yearhigh. The rising tensions between the U.S., Syria and Russia have boosted theoil market this week.

Technically,Junegold futures bulls still have the overall near-term technical advantage asprices are not that far below the recent highs. Gold bulls' next upsidenear-term price breakout objective is to produce a close above solid technicalresistance at the January high of $1,375.50. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at theApril low of $1,322.60. First resistance is seen at $1,350.00 and then attoday’s high of $1,356.70. First support is seen at today’s low of $1,338.50and then at this week’s low of $1,334.20. Wyckoff's Market Rating: 6.5

Maysilver futures prices closed nearer the session low on profit taking afterhitting a two-month high Wednesday. The silver bulls and bears are on a leveloverall near-term technical playing field. Silver bulls' next upside pricebreakout objective is closing prices above solid technical resistance at $17.00an ounce. The next downside price breakout objective for the bears is closingprices below solid support at the March low of $16.10. First resistance is seenat today’s high of $16.69 and then at this week’s high of $17.89. Next supportis seen at this week’s low of $16.295 and then at $16.10. Wyckoff's MarketRating: 5.0.

MayN.Y. copper closed down 475 points at 307.00 cents today. Prices closed nearerthe session low on more profit taking. The copper bulls and bears are on alevel overall near-term technical playing field. A three-week-old uptrend is inplace on the daily bar chart, but now just barely. Copper bulls' next upsideprice objective is pushing and closing prices above solid technical resistanceat 320.00 cents. The next downside price objective for the bears is closingprices below solid technical support at 300.00 cents. First resistance is seenat 310.00 cents and then at today’s high of 312.30 cents. First support is seenat today’s low of 304.05 cents and then at 302.00 cents. Wyckoff's MarketRating: 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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