Gold Slightly Down As Greenback Gains

(Kitco News) - Gold prices wereending the U.S. day session modestly lower Wednesday, pressured slightly by afirmer U.S. dollar index. The yellow metal ignored a batch of U.S. economicdata released earlier today, including a producer price index report that was abit hotter on inflation than expected. April Comex gold futures were last down$2.70 an ounce at $1,324.40. May Comex silver was last down $0.102 at $16.525an ounce.

TheU.S. producer price index and retail sales reports for February were closelyscrutinized today. PPI came in at up 0.2% overall, and up 0.2% on the corelevel, which excludes food and energy prices. Producer prices were up 2.8%,year-on-year. PPI was forecast to come in at up 0.1% from January. While thePPI data was just a bit hotter than expected, markets mostly ignored the report.The U.S. consumer price index was reported on Tuesday and it was deemed tame.

Meantime,U.S. retail sales in February were reported down 0.1% versus trade expectationsfor up 0.3%. That was the third month in a row for a decline in retail sales.This report was not a significant markets-mover, either.

Theworld marketplace is still watching developments in the Trump administrationafter President Trump unceremoniously fired his secretary of state, RexTillerson, on Tuesday. The Trump administration turmoil is an unsettlingelement for the marketplace due to the uncertainty regarding what could happennext.

Technically,Aprilgold futures prices closed nearer the session low today. The gold bullshave the slight overall near-term technical advantage, but need to show morepower soon to keep it. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at $1,350.00.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,300.00. First resistance is seen at today's highof $1,330.50 and then at $1,335.00. First support is seen at $1,320.00 and thenat last week's low of $1,313.20. Wyckoff's Market Rating: 5.5

Maysilver futures prices closed near the session low today. The silver bears havethe overall near-term technical advantage. Silver bulls' next upside pricebreakout objective is closing prices above solid technical resistance at theFebruary high of $17.04 an ounce. The next downside price breakout objectivefor the bears is closing prices below solid support at $16.00. First resistanceis seen at this week's high of $16.69 and then at $16.75. Next support is seenat last week's low of $16.33 and then at the March low of $16.16. Wyckoff'sMarket Rating: 4.0.

MayN.Y. copper closed up 200 points at 315.75 cents today. Prices closed nearmid-range and hit a two-week high today. The copper bulls have the overallnear-term technical advantage. Copper bulls' next upside price objective ispushing and closing prices above solid technical resistance at 325.00 cents.The next downside price objective for the bears is closing prices below solidtechnical support at the February low of 304.65 cents. First resistance is seenat today's high of 319.20 cents and then at 322.50 cents. First support is seenat today's low of 312.65 cents and then at 310.00 cents. Wyckoff's MarketRating: 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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