Gold Weaker Amid Little Risk Aversion At Present

(Kitco News) - Gold priceswere modestly down but up from their daily lows in midday U.S. trading Tuesday.The safe-haven metals are holding their own despite a more robust trader andinvestor risk appetite in the marketplace early this week, as seen by rallyingworld equities markets. June Comex gold futures were last down $2.40 an ounceat $1,348.20. May Comex silver was last up $0.103 at $16.775 an ounce.

Worldstock markets were mostly higher today, with U.S. stock indexes solidly higher inmidday New York day trading. Focus has turned from the bearish specter ofgeopolitics to the bullish element of generally strong global corporateearnings reports.

Still,U.S.-Russia-Syria tensions have not just disappeared. This matter will continueto limit the downside in gold and silver markets in the near term. And anyflare-up in the situation would likely quickly boost the metals. The Group ofSeven industrial nations (G-7) on Tuesday came out with a statement thatsupported the U.S.-led missile strikes on Syria and condemned the use ofchemical weapons in warfare.

Inother overnight news, China’s annual economic growth came in at 6.8% in thefirst quarter, which was slightly higher than expected and on pace with 2017’sgross domestic product growth rate. This is good news for precious metalsmarket bulls, as China is a major metals importer.

Thekey “outside markets” on Tuesday see the U.S. dollar index trading higher,which is a mildly bearish element for the precious metals on this day. Nymex crude oil prices are near steady and trading just above $66.00 a barrel.

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 above solid technical resistance atthe 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 $1,353.50 and thenat $1,362.60. First support is seen at today’s low of $1,340.20 and then at$1,335.00. Wyckoff's Market Rating: 6.5

Thesilver bulls and bears are on a level overall near-term technical playingfield. Silver bulls' next upside price breakout objective is closing 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 last week’s high of $17.89 andthen at $17.00. Next support is seen at this week’s low of $16.545 and then atlast week’s low of $16.295. Wyckoff's Market Rating: 5.0.

MayN.Y. copper closed down 155 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. A four-week-old uptrend is in place on the daily barchart. Copper bulls' next upside price objective is pushing and closing pricesabove solid technical resistance at 320.00 cents. The next downside priceobjective for the bears is closing prices below solid technical support at300.00 cents. First resistance is seen at today’s high of 310.20 cents and thenat Monday’s high of 311.70 cents. First support is seen at this week’s low of304.40 cents and then at 302.00 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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