Gold Sees Some Profit-Taking From Recent Gains

(Kitco News) - Gold pricesweremoderately lower in midday U.S. trading Thursday, on some profit-taking fromthe shorter-term futures traders following gains scored earlier this week. Somechart consolidation was also featured amid a quieter world marketplace latethis week. Silver prices were trading near steady this afternoon, but hitanother 2.5-month high overnight. The current technical postures for bothprecious metals favor the bulls. June Comex gold futures were last down $6.50an ounce at $1,347.00. May Comex silver was last down $0.002 at $17.24 anounce.

Afeature in the marketplace late this week is rising government bond yields(falling prices). Some U.S. maturities are at multi-month or multi-year highyields. While the precious metals markets did not react much to this situationtoday, rising bond yields suggest rising inflation. Historically, gold andsilver have been purchased as hedges against rising inflation.

Worldstock markets were mixed overnight amid a lack of major news developments. U.S.stock indexes were selling off in midday trading today. If the sell-offintensifies later this afternoon, the precious metals would likely besupported.

Thekey “outside markets” on Thursday see the U.S. dollar index trading higher.Nymex crude oil prices are also higher, hit another 3.5-year high, and aretrading just below $69.00 a barrel. Oil traders are awaiting an OPEC meetingthat takes place on Friday.

Technically,the gold bulls still have the overall near-term technical advantage as pricesare not that far below the recent highs. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat the January high of $1,375.50. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at the April low of$1,322.60. First resistance is seen at this week’s high of $1,359.00 and thenat $1,362.60. First support is seen at today’s low of $1,343.20 and then at$1,340.00. Wyckoff's Market Rating: 6.5

Thesilver bulls have the overall near-term technical advantage. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at the January high of $17.785 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at$16.50. First resistance is seen at today’s high of $17.36 and then at $17.50.Next support is seen at today’s low of $17.09 and then at $17.00. Wyckoff'sMarket Rating: 6.5.

MayN.Y. copper was down 265 points at 313.20 cents in afternoon dealings today.Prices were nearer the session low after hitting a seven-week high early ontoday. The copper bulls have the slight overall near-term technical advantage.A four-week-old uptrend is in place on the daily bar chart. Copper bulls' nextupside price objective is pushing and closing prices above solid technicalresistance at 325.00 cents. The next downside price objective for the bears isclosing prices below solid technical support at 300.00 cents. First resistanceis seen at 316.00 cents and then at today’s high of 319.55 cents. First supportis seen at today’s low of 311.20 cents and then at 309.00 cents. Wyckoff'sMarket Rating: 5.5.

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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