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Gold, Silver Prices Sink On Rally in Greenback, Bearish Technicals

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(Kitco News) - Gold and silver prices were moderately lower in early afternoon U.S. trading Tuesday, pressured by a stronger U.S. dollar index on this day and some chart-based selling. Gold hit a three-week low, while silver prices notched a three-month low. April Comex gold futures were last down $7.10 an ounce at $1,310.70. May Comex silver was last down $0.165 at $16.16 an ounce.

The marketplace is awaiting the major economic data point of the week, on Wednesday afternoon. The Federal Reserve’s Open Market Committee meeting (FOMC) that began Tuesday morning ends Wednesday afternoon with a statement. Federal Reserve Chairman Jerome Powell also holds his first press conference after the meeting. Most expect the Fed to slightly raise U.S. interest rates at this week’s meeting.

The Bank of England holds its monetary policy meeting on Thursday.

World stock markets were mixed today. U.S. stock indexes were mixed at midday. Technology sectors in world stock markets are under pressure early this week after Facebook gave consumer data to a firm involved with the Trump presidential campaign. The worries are that governments will slap restrictions on social media and their gathering of consumer data. Any strong selling pressure in the stock markets this week could work to the benefit of the safe-haven gold and silver markets. 

The key “outside markets” on Tuesday morning saw the U.S. dollar index sharply higher. Still, trading in the USDX has been choppy and sideways recently. Meantime, Nymex crude oil prices were solidly higher and hit a two-week high. Oil prices are in a near-term uptrend on the daily chart, which is a positive element for the precious metals markets.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures bears have the slight overall near-term technical advantage. Prices are in a four-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 the March high of $1,342.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at last $1,320.00 and then at $1,325.00. First support is seen at today’s low of $1,306.60 and then at the March low of $1,303.60. Wyckoff's Market Rating: 4.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures have the firm 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 March high of $16.895 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 this week’s high of $16.345 and then at $16.50. Next support is seen at today’s low of $16.10 and then at $16.00. Wyckoff's Market Rating: 2.5.

May N.Y. copper closed down 390 points at 304.30 cents today. Prices closed nearer the session low today and hit a three-month low. The copper bulls have lost their overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 320.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 309.40 cents and then this week’s high of at 311.55 cents. First support is seen at today’s low of 302.90 cents and then at 300.00 cents. Wyckoff's Market Rating: 5.0.

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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