Gold Up, Silver Hits 2.5-Mo. High, On Chart-Based Buying

(Kitco News) - Gold andsilver prices werehigher in early-afternoon U.S. trading Wednesday. Silver prices hit a 2.5-monthhigh and are trading well above $17.00. The chart postures for both metals aretilted more in favor of the bulls this week, which is inspiring technicallybased buying interest. June Comex gold futures were last up $4.40 an ounce at$1,353.90. May Comex silver was last up $0.438 at $17.23 an ounce.

Asolid rally in the crude oil market today that saw Nymex futures push to a3.5-year high above $68.00 a barrel also helped out the precious metals bullstoday. Crude oil is the leader of the raw commodity sector, and its “risingtide” is lifting many of raw commodity sector boats.

Worldstock markets were mostly higher again today. U.S. stock indexes were alsohigher. Strong first-quarter corporate earnings reports are driving the bullsthis week, while geopolitics has taken a back seat, for now. Risk appetite iskeen so far this week.

Theability of gold and silver to post price gains today, amid little risk aversionin the marketplace, is impressive.

Technically,the gold bulls have the firm overall near-term technical advantage as pricesare not that far below the recent highs. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat the January high of $1,375.50. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at the April low of$1,322.60. First resistance is seen at today’s high of $1,359.00 and then at$1,362.60. First support is seen at today’s low of $1,345.00 and then at$1,340.00. Wyckoff's Market Rating: 6.5

Thesilver bulls have regained the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the January high of $17.785 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$16.50. First resistance is seen at $17.50 and then at $17.785. Next support isseen at $17.00 and then at today’s low of $16.73. Wyckoff's Market Rating: 6.5.

MayN.Y. copper closed up 745 points at 316.45 cents today. Prices closed nearerthe session high and hit a four-week high today. The copper bulls have regainedthe overall near-term technical advantage. A four-week-old uptrend is in placeon the daily bar chart. Copper bulls' next upside price objective is pushingand closing prices above solid technical resistance at 325.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at 300.00 cents. First resistance is seen at today’s high of 317.85cents and then at 320.00 cents. First support is seen at 312.00 cents and thenat 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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