Gold Rebounds On Sell-Offs In Greenback, U.S. Stock Market

(Kitco News) - Gold prices weremoderately higher in early-afternoon trading Monday, boosted by a drop in theU.S. dollar index and the U.S. stock market. Gold had seen modest losses inovernight trading, based on some technical selling. April Comex gold futureswere last up $6.00 an ounce at $1,318.30.May Comex silver was last up $0.043at $16.315 an ounce.

Worldstock markets were mostly lower Monday. U.S. stock indexes were pressured by abig drop in FaceBook, amid allegations the social media platform gave awayunauthorized data on 50 million of its users, which may have gone to theRussians. The specter of a protectionist U.S. trade policy and a likely rise inU.S. interest rates this week were also negatives for equity markets. All ofthe above worked in favor of the safe-haven gold market.

Therewas more turmoil in the Trump administration over the weekend, amid new accusationsagainst President Trump's administration after an FBI official was fired. Thiscould have added some uneasiness to the marketplace. However, turmoil in theTrump administration is not anything new.

Themajor economic data point of the week will be the Federal Reserve's Open MarketCommittee meeting (FOMC) that begins Tuesday morning and ends Wednesdayafternoon with a statement. Federal Reserve Chairman Jerome Powell also holdshis first press conference after the meeting. Most expect the Fed to slightlyraise U.S. interest rates at this week's meeting.

TheBank of England holds its monetary policy meeting on Thursday.

Therewas no major U.S. economic data released Monday.

Technically,Aprilgold futures bears have the slight overall near-term technical advantage.Prices are in a four-week-old downtrend on the daily bar chart. Gold bulls'next upside near-term price breakout objective is to produce a close abovesolid technical resistance at the March high of $1,342.00. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,300.00. First resistance is seen at last Friday's high of$1,321.80 and then at $1,325.00. First support is seen at today's low of$1,307.40 and then at the March low of $1,303.60. Wyckoff's Market Rating: 4.5

Maysilver futures bears still have the overall near-term technical advantage.Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls'next upside 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 last week's high of$16.69. Next support is seen at today's low of $16.32 and then at the March lowof $16.16. Wyckoff's Market Rating: 3.0.

MayN.Y. copper closed down 185 points at 308.95 cents today. Prices closed nearmid-range today. The copper bulls have the slight overall near-term technicaladvantage, but are fading. Prices are in a four-week-old downtrend on the dailybar chart. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at 320.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat the February low of 304.65 cents. First resistance is seen at today's highof 311.55 cents and then at 315.00 cents. First support is seen at 304.65 centsand then at 302.00 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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