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Gold Surges to 7-Wk High On Safe-Haven Buying

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(Kitco News) - Gold and silver prices were ending the U.S. day session with solid gains Wednesday, on safe-haven demand. Gold hit a seven-week high today and silver notched a two-month high. There is elevated anxiety in the marketplace at mid-week regarding U.S. military intentions after Syria used poisonous gas on its civilians. President Trump tweeted today, warning Russia that U.S. missiles are coming and that Russia won’t be able to shoot them down. He also said Russia should not be aligning with an “animal” (Syria’s Assad) that gasses his own people. June Comex gold futures were last up $15.30 an ounce at $1,361.00. May Comex silver was last up $0.209 at $16.805 an ounce.

Gold hit its daily high in late-morning trading when reports surfaced that Saudi Arabian air defenses had intercepted a missile over the city of Riyad. No further information was available on this matter as of this writing.

World stock markets were mostly lower Wednesday. U.S. stock indexes opened lower but had rebounded off their lows at midday. Some profit taking from this week’s good gains was also featured in the stock indexes, along with the nervousness regarding U.S. military intentions against Syria.

The key U.S. economic highlights of the day was the consumer price index. The March CPI came in at down 0.1% from February, which was in line with market expectations.
Traders were awaiting the early-afternoon release of the minutes of the last Federal Open Market Committee (FOMC) meeting that took place in late March.

The key “outside markets” on Wednesday morning saw the U.S. dollar index slightly lower and at a two-week low. The greenback is seeing a corrective pullback this week after hitting a five-week high last Friday. Meantime, Nymex crude oil prices are solidly higher and hit a more-than-two-year high above $67.00 a barrel. Brent crude oil hit a four-year high above $71.00 a barrel earlier today. Crude has been boosted this week by the easing of U.S.-China trade tensions, by the missile strikes against Syria earlier this week, and by the threat of U.S. military action against Syria.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bulls have the firm overall near-term technical advantage and are having a very good week. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the April low of $1,322.60. First resistance is seen at today’s high of $1,369.40 and then at $1,375.50. First support is seen at $1,350.00 and then at today’s low of $1,342.50. Wyckoff's Market Rating: 7.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver bulls have gained the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $16.10. First resistance is seen at today’s high of $16.89 and then at $17.00. Next support is seen at today’s low of $16.515 and then at this week’s low of $16.295. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed down 190 points at 311.75 cents today. Prices closed nearer the session low on profit taking after hitting a three-week high early on today. The copper bulls and bears are on a level overall near-term technical playing field. A three-week-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 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 314.75 cents and then at 317.50 cents. First support is seen at 310.00 cents and then at Tuesday’s low of 306.80 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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