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Gold Sees Mild Profit-Taking; Bulls Still Have Firm Advantage

(Kitco News) - Gold prices ended the U.S. day session modestly lower Monday, on some profit-taking pressure from recent gains. Bulls remain in firm near-term control as prices are trending higher and hovering near last Friday’s 13-month high. The overall near-term path of least resistance for prices remains sideways to higher. April Comex gold was last down $4.20 at $1,266.50 an ounce. May Comex silver was last down $0.039 at $15.655 an ounce.

World stock markets were mostly weaker Monday on corrective pullbacks following recent good gains. U.S. stock indexes were narrowly mixed in afternoon trading Monday. The focus of traders and investors this week is the Thursday meeting of the European Central Bank. Many believe the ECB this week will announce further monetary policy stimulus measures by pushing interest rates further into negative territory, in an effort to jumpstart the moribund Euro zone economy.

China held its big central planning meeting during the weekend, with economic officials laying out plans to promote growth. Government officials said China’s GDP will grow by 6.5% to 7% this year. That’s a hefty number by world standards but is the slowest projected growth rate laid out by China in over 25 years.

The key “outside markets” on Monday saw the U.S. dollar index weaker and crude oil prices solidly higher, with Nymex April futures trading well above $37.00 a barrel.

Technically, April gold futures prices closed near mid-range. Prices Friday hit a 13-month high and closed at a bullish weekly high close. Prices are in a 2.5-month-old uptrend on the daily bar chart and bulls have the solid overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,238.00. First resistance is seen at today’s high of $1,274.10 and then at Friday’s high of $1,280.70. First support is seen at today’s low of $1,257.40 and then at $1,250.00. Wyckoff’s Market Rating: 7.5

May silver futures prices closed near mid-range today. The silver market bulls and bears are now back on a level overall near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the February high of $16.005 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.61. First resistance is seen at last week’s high of $15.84 and then at $16.005. Next support is seen at today’s low of $15.495 and then at $15.35. Wyckoff's Market Rating: 5.0.

May N.Y. copper closed up 30 points at 227.75 cents today. Prices closed nearer the session high and closed at a four-month high close today. The copper bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 237.50 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the 210.00 cents. First resistance is seen at today’s high of 224.50 cents and then at last week’s high of 230.40 cents. First support is seen at today’s low of 224.50 cents and then at 220.80 cents. Wyckoff's Market Rating: 6.0.

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 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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