Gold Weaker Amid Return Of Risk Appetite, Firmer U.S. Dollar

(Kitco News) - Gold prices wereending the U.S. day session moderately lower Thursday. The world marketplacequickly returned to a more robust risk appetite today, as evidenced by rallyingstock markets. A higher U.S. dollar index today that scored a five-week highalso was a negative element for the precious metals markets. June Comex gold futures were last down $10.40 an ounce at $1,329.90. May Comex silver was lastup $0.136 at $16.39 an ounce.

Worldstock markets were mostly higher today. U.S. stock indexes were holding goodgains early Thursday afternoon.

Fearshave somewhat eased regarding a potential U.S.-China trade war. Traders tend toinitially factor in worst-case scenarios for expected events and then ratchetdown those expectations. A couple of President Trump's economic advisors alsohave played down a full-blown trade war between the U.S. and China. Still, thereare no strong signs the U.S. and China will not proceed with their intendedtrade sanctions on each other. In the near term, look for more marketvolatility coming from this situation. Such should be a positive for the goldand silver markets.

Tradersare turning their attention to Friday morning's important U.S. employmentsituation report for March from the Labor Department. The key non-farm payrollsnumber is forecast to come in at up 178,000. Wednesday's ADP jobs number camein much higher than expected, at up 241,000, which hints Friday's job numbermay also come in hot.

Technically,gold futures bulls still have the slight overall near-term technical advantage,but trading 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 ispushing prices below solid technical support at the March low of $1,309.30.First resistance is seen at today's high of $1,338.70 and then at $1,350.00.First support is seen at $1,325.00 and then at $1,320.00. Wyckoff's MarketRating: 5.5

Thesilver bears have regained the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical 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 Wednesday's high of $16.515 and then at this week's highof $16.68. Next support is seen at the March low of $16.10 and then at $16.00.Wyckoff's Market Rating: 4.0.

MayN.Y. copper closed up 600 points at 307.05 cents today. Prices closed nearerthe session high today. The copper bears still have the overall near-termtechnical advantage. Prices are still in a seven-week-old downtrend on thedaily bar chart. Copper bulls' next upside price objective is pushing andclosing prices above solid technical resistance at 315.00 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at the September low of 293.25 cents. First resistance is seen attoday's high of 308.80 cents and then at 310.00 cents. First support is seen at305.00 cents and then at today's low of 301.35 cents. Wyckoff's Market Rating:4.0.

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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