Gold Gains Despite Keener Investor Risk Appetite
(Kitco News) - Gold prices wereholding modest gains in midday trading Monday, which is impressive given theupbeat trader and investor attitudes in the marketplace to start the tradingweek. June Comex gold futures were last up $3.30 an ounce at $1,351.20. May Comex silver was last up $0.057 at $16.715 an ounce.
Themarketplace late last week had fully anticipated the U.S.-led missile attack onSyria Saturday. Thus, markets did not show a big reaction to the weekendmilitary action today. Importantly, however, there is still some uncertaintyamong traders and investors regarding any more U.S. missile strikes againstSyria that may be coming, and how Russia will react to the overall situation.The U.S. is preparing to slap more economic sanctions on Russia. But as of now,the sense of the marketplace is that the conflict will not escalate. Thissituation is likely to continue to at least limit selling interest insafe-haven gold and silver for the near term.
Thekey “outside markets” on Monday see the U.S. dollar index lower. This alsoworked in favor of the precious metals market bulls.
Nymex crude oil prices were also lower at midday and trading just above $66.00 abarrel. Oil prices hit a 3.5-year high late last week, and that’s also abullish underlying element for the precious metals markets.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,the gold bulls have the overall near-term technical advantage as prices are notthat far below the recent highs. Gold bulls' next upside near-term pricebreakout objective is to produce a close in June futures 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 today’s high of $1,353.50and then at $1,362.60. First support is seen at today’s low of $1,342.80 andthen at $1,335.00. Wyckoff's Market Rating: 6.5
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Thesilver bulls and bears are on a level overall near-term technical playingfield. Silver bulls' next upside price breakout objective is closing May pricesabove solid technical resistance at $17.00 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at theMarch low of $16.10. First resistance is seen at today’s high of $16.77 andthen at last week’s high of $17.89. Next support is seen at today’s low of$16.545f and then at last week’s low of $16.295. Wyckoff's Market Rating: 5.0.
MayN.Y. copper closed up 325 points at 310.35 cents today. Prices closed nearerthe session high today. The copper bulls and bears are on a level overallnear-term technical playing field. A four-week-old uptrend is in place on thedaily bar chart. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at 320.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at 300.00 cents. First resistance is seen at today’s high of 311.70cents and then at the April high of 314.75 cents. First support is seen at307.50 cents and then at today’s low of 304.40 cents. Wyckoff's Market Rating:5.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.