Gold, Silver Bounce Amid Weaker U.S. Dollar, Equities

(Kitco News) - Gold and silver prices were higher in early-afternoon U.S. trading Tuesday, on reboundsfollowing recent selling pressure. A weaker U.S. dollar index on this day and asell-off in the U.S. stock market worked in favor of the precious metals bullstoday. June Comex gold futures were last up $9.70 an ounce at $1,333.30. May Comex silver was last up $0.128 at $16.715 an ounce.

TheU.S. stock market bulls may have been spooked a bit today as U.S. Treasury10-year note yields hit a four-year high of 3%. Such hints at rising inflation,but not yet problematic. Still, hard assets (metals, commodities) performbetter than paper assets (stocks, bonds) during time of rising inflation thatcould become worrisome at some point, and possibly sooner than most wouldreckon.

U.S.President Trump and French President Macron met today in Washington, D.C., todiscuss whether to continue the Iran nuclear deal reached in 2015, or to pullout of it and reinstate sanctions on Iran. The deal is up for renewal in earlyMay.

Thekey “outside markets” on Tuesday saw the U.S. dollar index trading modestlylower after hitting a more-than-three-month high overnight. Meantime, Nymex crude oil prices are near steady at midday and trading just below $69.00 abarrel. Oil prices are not far below last week’s a 3.5-year high.

Technically,the gold bulls have the overall near-term technical advantage but tradingremains choppy. Gold bulls' next upside near-term price breakout objective isto produce a close above solid technical resistance at the January high of$1,375.50. 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 this week’s high of $1,337.60 and then at $1,345.00.First support is seen at the April low of $1,322.60 and then at $1,312.40.Wyckoff's Market Rating: 6.0

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 the April high of $17.36 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at the March low of $16.10. First resistance is seen at $16.89 and thenat $17.00. Next support is seen at today’s low of $16.53 and then at $16.35.Wyckoff's Market Rating: 5.0.

MayN.Y. copper closed up 305 points at 314.10 cents today. Prices closed nearmid-range. The copper bulls have the overall near-term technical advantage. Afour-week-old uptrend is in place on the daily bar chart. Copper bulls' nextupside price objective is pushing and closing prices above solid technicalresistance at 320.00 cents. The next downside price objective for the bears isclosing prices below solid technical support at 300.00 cents. First resistanceis seen at today’s high of 311.75 cents and then at the April high of 319.55cents. First support is seen at 312.00 cents and then at 310.00 cents.Wyckoff's Market Rating: 6.0.

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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