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P.M. Kitco Metals Roundup: Gold Down on Correction from Gains Wed.; U.S. Jobs Report on Deck

Thursday April 2, 2015 2:08 PM

(Kitco News) - Gold prices ended the U.S. day session moderately lower Thursday, on a downside technical correction from the sharp gains seen Wednesday. June Comex gold was last down $7.40 at $1,200.80 an ounce. May Comex silver was last down $0.349 at $16.71 an ounce.

Focus of the market place turns to Friday’s U.S. jobs report for March. The key non-farm payrolls number is expected to come in at up 248,000. U.S. markets are closed Friday for the Good Friday holiday. Thus, much of the market reaction to Friday’s jobs report is likely to be seen on Monday.

The key outside markets were mixed for the precious metals Thursday, as the U.S. dollar index was lower (bullish) but crude oil prices were also lower (bearish). The United Nations-Iran nuclear talks ended Thursday with a partial agreement. Crude oil prices were pressured partly on that news. It’s more likely now that Iranian crude oil will be back on an already glutted world market.

Traders closely watched a speech given today by Fed Chair Janet Yellen at a community development conference. However, Yellen’s remarks did not address U.S. monetary policy. Last Friday Yellen spoke at a meeting and made some waves by sounding a bit more hawkish on U.S. monetary policy. Given this week’s mostly downbeat U.S. economic data, a growing number of analysts and market watchers think the Fed will not be able to raise interest rates during 2015 because the U.S. economy won’t be strong enough.

The London P.M. gold fixing is $1,198.50 versus the previous A.M. fixing of $1,201.50.

Technically, June gold futures prices closed near mid-range today and saw a corrective pullback from Wednesday’s big gains. Gold bears have the overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,223.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at this week’s low of $1,178.20. First resistance is seen at this week’s high of $1,208.70 and then at last week’s high of $1,220.40. First support is seen at today’s low of $1,194.80 and then at $1,190.00. Wyckoff’s Market Rating: 3.0

May silver futures prices closed nearer the session low and gave back most of Wednesday’s gains. Bears have the near-term technical advantage in silver. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $17.405 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at today’s high of $17.00 and then at $17.25. Next support is seen at today’s low of $16.57 and then at this week’s low of $16.435. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed down 225 points at 272.55 cents today. Prices closed nearer the session low and closed at a bearish weekly low close today. The copper market bulls still have the slight overall near-term technical advantage but are fading and need to show fresh power soon to keep it. A two-month-old uptrend is still in place on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the March high of 291.45 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 265.00 cents. First resistance is seen at today’s high of 276.55 cents and then at 278.70 cents. First support is seen at this week’s low of 270.85 cents and then at 270.00 cents. Wyckoff's Market Rating: 5.5.

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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