Gold Gains Despite Keener Investor Risk Appetite
(Kitco News) - Gold prices were holding modest gains in midday trading Monday, which is impressive given the upbeat trader and investor attitudes in the marketplace to start the trading week. June Comex gold futures were last up $3.30 an ounce at $1,351.20. May Comex silver was last up $0.057 at $16.715 an ounce.
The marketplace late last week had fully anticipated the U.S.-led missile attack on Syria Saturday. Thus, markets did not show a big reaction to the weekend military action today. Importantly, however, there is still some uncertainty among traders and investors regarding any more U.S. missile strikes against Syria that may be coming, and how Russia will react to the overall situation. The U.S. is preparing to slap more economic sanctions on Russia. But as of now, the sense of the marketplace is that the conflict will not escalate. This situation is likely to continue to at least limit selling interest in safe-haven gold and silver for the near term.
The key “outside markets” on Monday see the U.S. dollar index lower. This also worked in favor of the precious metals market bulls.
Nymex crude oil prices were also lower at midday and trading just above $66.00 a barrel. Oil prices hit a 3.5-year high late last week, and that’s also a bullish underlying element for the precious metals markets.
Technically, the gold bulls have the overall near-term technical advantage as prices are not that far below the recent highs. Gold bulls' next upside near-term price breakout objective is to produce a close in June futures 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 $1,353.50 and then at $1,362.60. First support is seen at today’s low of $1,342.80 and then at $1,335.00. Wyckoff's Market Rating: 6.5
The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing May 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 $16.77 and then at last week’s high of $17.89. Next support is seen at today’s low of $16.545f and then at last week’s low of $16.295. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed up 325 points at 310.35 cents today. Prices closed nearer the session high today. The copper bulls and bears are on a level overall near-term technical playing field. A four-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 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 311.70 cents and then at the April high of 314.75 cents. First support is seen at 307.50 cents and then at today’s low of 304.40 cents. Wyckoff's Market Rating: 5.0.