Gold Showing Impressive Resilience Despite Rallying U.S. Stock Market

(Kitco News) - Gold prices weremodestly up in midday trading Tuesday, despite trader and investor risk appetitebeing keen early this week, as evidenced by solid rallies in the U.S. stockindexes and other world stock markets. Gold and silver bulls should considertheir metals’ performance so far this week as pretty impressive, given littlerisk aversion in the marketplace, at present. June Comex gold futures were lastup $3.20 an ounce at $1,343.20. May Comex silver was last up $0.061 at $16.59an ounce.

U.S.-Chinatrade tensions have significantly eased early this week. Trump administrationofficials said on Sunday and Monday that trade sanctions against China are notimminent and there is time to work out a solution to the matter. China’sPremiere Xi Jinping said today he wants a more open Chinese economy and pledgedto do a better job of protecting intellectual property.

Newsthat President Trump’s personal lawyer had his offices raided by the FBI may ormay not have supported the gold and silver markets a bit today. Some legalexperts are saying this is a very big deal. If so, the matter could become amuch more important markets factor in the coming days, and that would besupportive to safe-haven gold and silver markets.

Newsthat the U.S. has sanctioned Russian oligarchs and the metals firm United Co.Rusal has boosted aluminum, copper and palladium prices early this week. Rusalis the world’s second-largest aluminum producer.

Thekey “outside markets” on Tuesday saw the U.S. dollar index weaker. Thegreenback is seeing a corrective pullback so far this week after hitting afive-week high last Friday. Meantime, Nymex crude oil prices are solidly andtrading just above $65.00 a barrel. Crude is boosted by the easing ofU.S.-China trade tensions and by the missile strikes against Syria this week.

Technically,Junegold futures bulls have the overall near-term technical advantage, buttrading remains choppy. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at the Marchhigh of $1,362.60. Bears' next near-term downside price breakout objective is pushingprices below solid technical support at the March low of $1,309.30. Firstresistance is seen at $1,348.00 and then at $1,352.50. First support is seen attoday’s low of $1,334.20 and then at this week’s low of $1,330.10. Wyckoff'sMarket Rating: 6.5

Maysilver futures bears have the slight overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $16.00. Firstresistance is seen at last week’s high of $16.68 and then at $16.81. Nextsupport is seen at this week’s low of $16.295 and then at the March low of$16.10. Wyckoff's Market Rating: 4.5.

MayN.Y. copper closed up 575 points at 313.35 cents today. Prices closed near thesession high and hit a three-week high today. The copper bulls and bears arenow back on a level overall near-term technical playing field, but the bullshave momentum. A two-month-old downtrend on the daily bar chart has beennegated. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at 325.00 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat 300.00 cents. First resistance is seen at 315.00 cents and then at 317.50cents. First support is seen at 310.00 cents and then at today’s low of 306.80cents. 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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