Gold Lifted On Some Safe-Haven Demand, Weaker U.S. Dollar

(Kitco News) - Gold prices wereending the U.S. day session with moderate gains early Tuesday afternoon. Theprecious metals saw some safe-haven demand due to increasing concerns aboutturmoil in the Trump administration. A lower U.S. dollar index on this day alsoworked in favor of the metals bulls. April Comex gold futures were last up $5.70an ounce at $1,326.50. May Comex silver was last up $0.069 at $16.610 an ounce.

Newsthis morning that U.S. Secretary of State Rex Tillerson was fired by PresidentTrump prompted some fresh safe-haven in gold and silver markets. The firing ofa Trump cabinet official comes on the heels of Trump’s chief economic advisorquitting last week. Other lower-level Trump administration officials have alsohit the exit doors recently. Now more than ever there is the perception thatthe Trump presidency is in chaos.

Thekey economic data point of the day Tuesday saw the U.S. consumer price indexreport for February come in at up 0.2%, and up 2.2%, year-on-year. Thosenumbers were in line with market expectations. The “core” CPI number-whichexcludes food and energy-was also up 0.2% from January and up 1.8%,year-on-year. The metals markets were supported on the news because theinflation data was not deemed “too hot.”

Thekey “outside markets” on Tuesday saw the U.S. dollar index lower, partly on theTillerson news and on the tame U.S. CPI report. Meantime, Nymex crude oil prices were lower. Rising U.S. shale oil production and some reported discordamong OPEC leaders Saudi Arabia and Iran have put the crude oil market on thedefensive recently.

Technically,Aprilgold futures prices were nearer the session high in late trading and scoringa bullish “outside day” up on the daily bar chart today. The gold bulls haveregained the slight overall near-term technical advantage. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at $1,350.00. Bears' next near-term downside pricebreakout objective is pushing prices below solid technical support at$1,300.00. First resistance is seen at today’s high of $1,328.30 and then at$1,335.00. First support is seen at $1,320.00 and then at last week’s low of$1,313.20. Wyckoff's Market Rating: 5.5

Maysilver futures prices were near mid-range at midday today. The silver bearshave the 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 $16.75 and then at the March high of $16.895. 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 105 points at 313.40 cents today. Prices closed nearerthe session high today. The copper bulls have the slight overall near-termtechnical advantage. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at 325.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at the February low of 304.65 cents. First resistance is seen at thisweek’s high of 315.55 cents and then at 318.00 cents. First support is seen attoday’s low of 310.24 cents and then at 307.50 cents. Wyckoff's Market 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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