Gold, Silver Prices Sink To 2-Mo. Lows On Firmer U.S. Dollar, Bearish Charts

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(Kitco News) - Gold andsilver prices were ending the U.S. day session lower and hit two-month lowsThursday. The metals are being pressured this week by a surging U.S. dollar index that hit a six-week high today. Technical selling pressure was alsofeatured in gold and silver markets today, as sell stop orders were triggeredin the futures markets when prices dropped below key chart support levels. April Comex gold futures were last down $12.80 an ounce at $1,305.40. May Comex silver was last down $0.132 at $16.275 an ounce.

Goldand silver got no support from the steep U.S. stock market sell-off today, partlyon news the Trump administration has announced it will slap tariffs on steeland aluminum imported into the U.S. Such could trigger world trade wars.

Despitethe uptick in volatility in global stock markets recently, there does not seemto be much risk aversion in the marketplace, which is also working against thesafe-haven gold and silver markets. As we ended the tumultuous month ofFebruary, it appears that higher volatility is here to stay for a while-maybenot extreme volatility, but certainly up from the low levels seen during mostof 2017.

NewFed Chairman Jerome Powell's testimony to the U.S. Senate today did not produceanything significantly new or different from his remarks to the House ofRepresentatives on Tuesday. Thus, markets were little moved on his commentstoday.

Theother key outside market on Thursday saw Nymex crude oil prices weaker andtrading just below $61.00 a barrel. Oil bulls are fading badly this week, amidgrowing U.S. oil production the past few months. A drooping crude oil market,which is arguably the leader of the raw commodity sector, is yet anotherbearish element for the metals markets.

Technically,Aprilgold futures prices closed nearer the session low today. The gold bullshave lost their slight overall near-term technical advantage. Prices haveestablished a five-week-old downtrend on the daily bar chart. Gold bulls' nextupside near-term price breakout objective is to produce a close above solidtechnical resistance at this week's high of $1,342.90. Bears' next near-termdownside price breakout objective is pushing prices below solid technicalsupport at $1,300.00. First resistance is seen at $1,315.00 and then at today'shigh of $1,321.40. First support is seen at today's low of $1,303.60 and thenat $1,300.00. Wyckoff's Market Rating: 5.0

Maysilver futures prices closed near mid-range today and hit a 2.5-month low. Thesilver bears have the overall near-term technical advantage. Prices are in afive-week-old downtrend on the daily bar chart. 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 today's high of $16.435 and then at Wednesday's high of $16.52. Nextsupport is seen at today's low of $16.16 and then at $16.00. Wyckoff's MarketRating: 3.0.

MayN.Y. copper closed down 160 points at 311.65 cents today. Prices closed nearerthe session low and hit another two-week low today. The copper bulls still havethe overall near-term technical advantage, but are fading this week. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at the February high of 329.05 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 314.75 cents and then at Wednesday's high of 318.60 cents. First support isseen at today's low of 309.80 cents and then at 307.50 cents. Wyckoff's MarketRating: 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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