Gold Sees Bargain-Hunting, Short-Covering Bounce

(Kitco News) - Gold prices aremoderately up in early-afternoon U.S. trading Thursday, on some bargain huntingin the cash market and on short covering in the futures market. A slightlyweaker U.S. dollar index and modestly lower U.S. stock indexes today are alsoslightly supporting the precious metals markets. June Comex gold futures werelast up $7.60 an ounce at $1,313.30. July Comex silver was last up $0.080 at$16.455 an ounce.

Limitinggains in gold today was a report from the World Gold Council today that globaldemand for the yellow metal fell 7% in the first quarter of this year, comparedto the same period last year. India and China led the decline, on weakeningdemand for bars and coins.

Theoutside markets today see the U.S. dollar index slightly lower on a correctivepullback after hitting a 4.5-month high on Wednesday. Meantime, Nymex crude oil prices are slightly up and trading around $68.00 a barrel.

AU.S. high-level trade delegation is in China Thursday to try to avert a tradewar between the world's two largest economies. The marketplace will closelywatch the news outlets for updates on progress at the meeting. No news has comeout on the matter as off midday today.

OnFriday is the April U.S. employment report from the Labor Department-arguablythe most important U.S. data point of the month. The key non-farm payrollsnumber is forecast to come in at up 195,000.

Abusy day for U.S. economic data Thursday had little impact on the preciousmetals markets.

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 is holding. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat last week's high of $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 today's high of $1,319.00 and then at $1,325.00. Firstsupport is seen at today's low of $1,304.20 and then at this week's low of$1,302.30. 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 $16.62 and then at $16.75. Nextsupport is seen at $16.25 and then at Wednesday's low of $16.175. Wyckoff'sMarket Rating: 3.5.

JulyN.Y. copper closed up 120 points at 308.00 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 today's high of 312.15 cents and then at 315.00 cents. First support istoday's low of 305.65 cents and then at this week's low of 301.95 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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