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P.M. Kitco Metals Roundup: Gold Feeling the Pressure of a Rebounding U.S. Dollar Index

Thursday April 9, 2015 1:55 PM

(Kitco News) - Gold prices ended the U.S. day session moderately lower again Thursday. A strong rally in the U.S. dollar index has once again put the precious metals market bulls on the defensive. Gold and silver bulls have now lost their recently gained upside technical momentum. June Comex gold was last down $8.40 at $1,194.70 an ounce. May Comex silver was last down $0.269 at $16.185 an ounce.

The U.S. dollar index traded sharply higher Thursday on good follow-through buying from Wednesday’s rebound. FOREX traders deemed the latest FOMC minutes from Wednesday afternoon as a bit more hawkish than expected and the greenback appreciated against the other major currencies. The FOMC minutes showed a divided Fed when it comes to the timing of raising U.S. interest rates. Upon having time to digest the FOMC minutes, the market place also remains divided on whether a U.S. rate hike will be coming at the June FOMC meeting, or later in the year. The Fed funds rate futures still shows a very low probability of a U.S. rate hike in June, and European stock traders keyed on that.

The other key “outside market” found crude oil prices higher Thursday on a corrective bounce following strong losses Wednesday. Still, crude oil prices have worked up from the multi-year low scored in mid-March, to suggest a market bottom is in place.

The London P.M. gold fix is $1,194.80 versus the previous A.M. fixing of $1,196.00.

Technically, June gold futures prices closed nearer the session low again today. Bulls have lost their recent momentum. Gold bears have the firm overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,224.50. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,178.20. First resistance is seen at today’s high of $1,203.30 and then at Wednesday’s high of $1,212.50. First support is seen at today’s low of $1,192.40 and then at $1,185.00. Wyckoff’s Market Rating: 2.5

May silver futures prices closed nearer the session low and hit another three-week low today. Silver bears have the firm near-term technical advantage and gained more downside momentum today. 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 $16.00. First resistance is seen at today’s high of $16.51 and then at $16.75. Next support is seen at today’s low of $16.105 and then at $16.00. Wyckoff's Market Rating: 2.5.

May N.Y. copper closed down 35 points at 272.80 cents today. Prices closed nearer the session low. A strong U.S. dollar today was a bearish “outside market” force working against copper. The copper market bulls and bears are on a level near-term technical playing field. 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 260.00 cents. First resistance is seen at today’s high of 275.95 cents and then at 277.70 cents. First support is seen at 271.20 cents and then at this week’s low of 269.35 cents. Wyckoff's Market Rating: 5.0.

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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