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Gold Sees Bargain-Hunting, Short-Covering Bounce

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(Kitco News) - Gold prices are moderately up in early-afternoon U.S. trading Thursday, on some bargain hunting in the cash market and on short covering in the futures market. A slightly weaker U.S. dollar index and modestly lower U.S. stock indexes today are also slightly supporting the precious metals markets. June Comex gold futures were last up $7.60 an ounce at $1,313.30. July Comex silver was last up $0.080 at $16.455 an ounce.

Limiting gains in gold today was a report from the World Gold Council today that global demand for the yellow metal fell 7% in the first quarter of this year, compared to the same period last year. India and China led the decline, on weakening demand for bars and coins.

The outside markets today see the U.S. dollar index slightly lower on a corrective pullback after hitting a 4.5-month high on Wednesday. Meantime, Nymex crude oil prices are slightly up and trading around $68.00 a barrel.

A U.S. high-level trade delegation is in China Thursday to try to avert a trade war between the world’s two largest economies. The marketplace will closely watch the news outlets for updates on progress at the meeting. No news has come out on the matter as off midday today.

On Friday is the April U.S. employment report from the Labor Department—arguably the most important U.S. data point of the month. The key non-farm payrolls number is forecast to come in at up 195,000.

A busy day for U.S. economic data Thursday had little impact on the precious metals markets.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold bulls and bears are on a level overall near-term technical playing field. A close below major psychological support at $1,300.00 would open the door to a larger leg down in prices in the near term. However, right now it appears that strong support level is holding. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,337.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,319.00 and then at $1,325.00. First support is seen at today’s low of $1,304.20 and then at this week’s low of $1,302.30. Wyckoff's Market Rating: 5.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have the 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 December low of $15.805. First resistance is seen at today’s high of $16.62 and then at $16.75. Next support is seen at $16.25 and then at Wednesday’s low of $16.175. Wyckoff's Market Rating: 3.5.

July N.Y. copper closed up 120 points at 308.00 cents today. Prices closed near mid-range today. The copper bulls and bears are on a level overall near-term technical playing field. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 321.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 295.85 cents. First resistance is seen at today’s high of 312.15 cents and then at 315.00 cents. First support is today’s low of 305.65 cents and then at this week’s low of 301.95 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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