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P.M. Kitco Metals Roundup: Gold Ends Down on Technical Selling, Lack of Fresh, Bullish Inputs

Monday April 21, 2014 2:02 PM

(Kitco News) - Gold prices ended the U.S. day session lower and hit a three-week low Monday. The bearish technical posture presently gripping the gold market is prompting keener selling interest amid a lack of fresh, bullish fundamental news at present. June gold was last down $4.40 at $1,289.50 an ounce. Spot gold was last quoted down $5.10 at $1,290.00. May Comex silver last traded down $0.226 at $19.37 an ounce.

Many European and Asian markets were closed Monday due to the Easter holiday, which made for a more subdued trading day in the U.S. The U.S. economic data release slate was also light Monday and included the Chicago Fed national activity index and leading economic indicators. Neither of those reports provided much impetus to the precious metals markets.

The Russia-Ukraine crisis has de-escalated for the moment. Reports over the weekend said the U.S. and Russia have agreed to work to tamp down this geopolitical flashpoint. U.S. Vice President Joe Biden is heading to Kiev early this week for talks with Ukrainian officials.

Technically, June gold futures prices closed nearer the session low and hit a three-week low. Bears have the near-term technical advantage as a five-week-old downtrend line is in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the April high of $1,331.40. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the April low of $1,277.40. First resistance is seen at $1,300.00 and then at Monday’s high of $1,302.50. First support is seen at Monday’s low of $1,281.80 and then at $1,277.40. Wyckoff’s Market Rating: 3.5

May silver futures prices closed nearer the session low and closed at a fresh 11-week low close Monday. The bears have the solid overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the April high of $20.40 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at $19.50 and then at Monday’s high of $19.705. Next support is seen at last week’s low of $19.22 and then at $19.00. Wyckoff's Market Rating: 2.0.

May N.Y. copper closed up 40 points at 304.90 cents Monday. Prices closed nearer the session high on tepid short covering. Bears still have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the April high of 308.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of 296.55 cents. First resistance is seen at last week’s high of 306.20 cents and then at 308.00 cents. First support is seen at 303.00 cents and then at 301.00 cents. Wyckoff's Market Rating: 4.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff

 

 

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 precious metal products, 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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