Gold, Silver Prices Sink To 2-Mo. Lows On Firmer U.S. Dollar, Bearish Charts
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(Kitco News) - Gold and silver prices were ending the U.S. day session lower and hit two-month lows Thursday. 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 also featured in gold and silver markets today, as sell stop orders were triggered in 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.
Gold and silver got no support from the steep U.S. stock market sell-off today, partly on news the Trump administration has announced it will slap tariffs on steel and aluminum imported into the U.S. Such could trigger world trade wars.
Despite the uptick in volatility in global stock markets recently, there does not seem to be much risk aversion in the marketplace, which is also working against the safe-haven gold and silver markets. As we ended the tumultuous month of February, it appears that higher volatility is here to stay for a while—maybe not extreme volatility, but certainly up from the low levels seen during most of 2017.
New Fed Chairman Jerome Powell’s testimony to the U.S. Senate today did not produce anything significantly new or different from his remarks to the House of Representatives on Tuesday. Thus, markets were little moved on his comments today.
The other key outside market on Thursday saw Nymex crude oil prices weaker and trading just below $61.00 a barrel. Oil bulls are fading badly this week, amid growing 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 another bearish element for the metals markets.
Technically, April gold futures prices closed nearer the session low today. The gold bulls have lost their slight overall near-term technical advantage. Prices have established a five-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,342.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at $1,315.00 and then at today’s high of $1,321.40. First support is seen at today’s low of $1,303.60 and then at $1,300.00. Wyckoff's Market Rating: 5.0
May silver futures prices closed near mid-range today and hit a 2.5-month low. The silver bears have the overall near-term technical advantage. Prices are in a five-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $17.04 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $16.435 and then at Wednesday’s high of $16.52. Next support is seen at today’s low of $16.16 and then at $16.00. Wyckoff's Market Rating: 3.0.
May N.Y. copper closed down 160 points at 311.65 cents today. Prices closed nearer the session low and hit another two-week low today. The copper bulls still have the overall near-term technical advantage, but are fading this week. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 329.05 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 304.65 cents. First resistance is seen at today’s high of 314.75 cents and then at Wednesday’s high of 318.60 cents. First support is seen at today’s low of 309.80 cents and then at 307.50 cents. Wyckoff's Market Rating: 6.0.