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Gold Sees Some Profit-Taking From Recent Gains

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(Kitco News) - Gold prices were moderately lower in midday U.S. trading Thursday, on some profit-taking from the shorter-term futures traders following gains scored earlier this week. Some chart consolidation was also featured amid a quieter world marketplace late this week. Silver prices were trading near steady this afternoon, but hit another 2.5-month high overnight. The current technical postures for both precious metals favor the bulls. June Comex gold futures were last down $6.50 an ounce at $1,347.00. May Comex silver was last down $0.002 at $17.24 an ounce.

A feature in the marketplace late this week is rising government bond yields (falling prices). Some U.S. maturities are at multi-month or multi-year high yields. While the precious metals markets did not react much to this situation today, rising bond yields suggest rising inflation. Historically, gold and silver have been purchased as hedges against rising inflation.

World stock markets were mixed overnight amid a lack of major news developments. U.S. stock indexes were selling off in midday trading today. If the sell-off intensifies later this afternoon, the precious metals would likely be supported.

The key “outside markets” on Thursday see the U.S. dollar index trading higher. Nymex crude oil prices are also higher, hit another 3.5-year high, and are trading just below $69.00 a barrel. Oil traders are awaiting an OPEC meeting that takes place on Friday.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls still 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 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 this week’s high of $1,359.00 and then at $1,362.60. First support is seen at today’s low of $1,343.20 and then at $1,340.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $17.785 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at today’s high of $17.36 and then at $17.50. Next support is seen at today’s low of $17.09 and then at $17.00. Wyckoff's Market Rating: 6.5.

May N.Y. copper was down 265 points at 313.20 cents in afternoon dealings today. Prices were nearer the session low after hitting a seven-week high early on today. The copper bulls have the slight overall near-term technical advantage. 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 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 316.00 cents and then at today’s high of 319.55 cents. First support is seen at today’s low of 311.20 cents and then at 309.00 cents. Wyckoff's Market Rating: 5.5.

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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