Gold Futures Firmer, But Off Highs As U.S. Dollar Index Rebounds

(Kitco News) - Gold futuresprices were ending the Thursday U.S. day session modestly up but well down fromdaily highs. Meantime, the cash gold market was weaker today following its bigafternoon gains on Wednesday. A firming U.S. dollar index today somewhatlimited buying interest in the precious metals markets. April Comex gold futures were last up $3.90 an ounce at $1,325.40. May Comex silver was lastdown $0.054 at $16.365 an ounce.

Safe-havengold and silver bulls were somewhat perplexed their metals did not react morepositively to a big U.S. stock market sell off that occurred in part due to theU.S. slapping new trade sanctions on China. However, markets and traders arefickle, and a heated trade war between the two largest economies in the worldcould well wind up boosting gold and silver prices in the near term. Rememberthat the U.S. stock market at first did not pay much attention to the U.S.protectionist rhetoric of recent weeks.

Thekey “outside markets” on Thursday saw the U.S. dollar index slightly higher ona corrective bounce after hitting a two-week low overnight. Trading in the USDXhas been choppy. Meantime, Nymex crude oil prices were lower on profit takingfrom this week’s strong gains that saw prices hit a seven-week high onWednesday.

Technically,Aprilgold futures bulls and bears are on a level overall near-term technicalplaying field. Gold bulls' next upside near-term price breakout objective is toproduce a close above solid technical resistance at $1,350.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,300.00. First resistance is seen at this week’s high of$1,336.90 and then at the March high of $1,342.00. First support is seen at$1,320.00 and then at $1,310.00. Wyckoff's Market Rating: 5.0

Maysilver futures bears have the overall near-term technical advantage. Prices arestill in a five-week-old downtrend on the daily bar chart. Silver bulls' nextupside price breakout objective is closing prices above solid technicalresistance at the March high of $16.895 an ounce. The next downside pricebreakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at $16.50 and then at this week’s high of$16.665. Next support is seen at $16.25 and then at this week’s low of $16.10.Wyckoff's Market Rating: 3.5.

MayN.Y. copper closed down 355 points at 302.35 cents today. Prices closed nearerthe session low today and hit a three-month low. The copper bears have gainedthe slight overall near-term technical advantageg. Prices are in afive-week-old downtrend on the daily bar chart. Copper bulls' next upside priceobjective is pushing and closing prices above solid technical resistance at315.00 cents. The next downside price objective for the bears is closing pricesbelow solid technical support at the December low of 295.85 cents. First resistanceis seen at 305.00 cents and 309.40 cents. First support is seen at 300.00 centsand then at 297.50 cents. Wyckoff's Market Rating: 4.5.

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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