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P.M. Kitco Metals Roundup: Gold Ends Weaker As U.S. Dollar Shows Powerful Rebound
Monday April 13, 2015 1:35 PM
(Kitco News) - Gold prices ended the U.S. day session moderately lower Monday as a solid rally in the U.S. dollar index the past week has the precious metals markets once again on the defensive. June Comex gold was last down $4.90 at $1,199.70 an ounce. May Comex silver was last down $0.082 at $16.30 an ounce.
Focus of the market place is back on the currency markets, after the U.S. dollar index has made a very strong rebound from recent selling pressure and hit a four-week high Monday. The recent near-term technical damage that had hinted of a market top has all been repaired and new for-the-move highs are now in the cards in the near term. Meantime, the Euro currency is slumping again and is moving in on its recent 12-year low. These currency movements are bearish for the raw commodity sector, including the precious metals, as most raw commodities are priced in U.S. dollars on the world markets. The stronger greenback makes those commodities more expensive to purchase with other world currencies.
The other key “outside market” saw crude oil prices modestly higher Monday. Trading has turned choppy in crude oil recently. However, Nymex crude oil futures prices are still in a three-week-old uptrend on the daily bar chart.
In overnight news, there was downbeat economic news coming out of China Monday, as its exports were down 15% in March, while its imports declined by 12.7%, year-on-year. This news is a bearish underlying factor for the raw commodity markets, as the world’s largest population and second-largest economy is major raw commodity consumer and importer. Traders and investors will be closely examining China’s gross domestic product report for the first quarter, due out later this week.
There was no major U.S. economic data due for release Monday.
The London P.M. gold fix is $1,198.90 versus the previous A.M. fixing of $1,197.85.
Technically, June gold futures prices closed nearer the session low today. 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 the April 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 $1,209.30 and then at $1,212.50. First support is seen at today’s low of $1,196.10 and then at last week’s low of $1,192.40. Wyckoff’s Market Rating: 3.0
May silver futures prices closed nearer the session low today. Silver bears have the firm near-term technical advantage. 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 $16.65. Next support is seen at today’s low of $16.235 and then at last week’s low of $16.105. Wyckoff's Market Rating: 2.5.
May N.Y. copper closed down 165 points at 271.75 cents today. Prices closed near the session low. A firmer 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 276.20 cents and then at 277.70 cents. First support is seen at 271.20 cents and then at last 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
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