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Gold Retreats Amid Risk-On Day; FOMC Minutes A Non-Event

(Kitco News) - Safe-haven gold prices ended the U.S. day session moderately lower Wednesday. There was less risk aversion in the marketplace on this day, which kept the yellow metal bulls on the defensive. However, gold prices did closed up from their session lows as the key “outside markets” were in a bullish posture for the precious metals markets today—a lower U.S. dollar index and solidly higher crude oil prices. June Comex gold was last down $5.00 at $1,225.00 an ounce. May Comex silver was last down $0.036 at $15.09 an ounce.

Wednesday afternoon’s minutes from the latest meeting of the Federal Open Market Committee (FOMC) did not move the markets appreciably, as there were no surprising or unexpected revelations in the minutes. The minutes said the FOMC debated a rate hike in April, but members were mostly against such a move.

World stock markets stabilized Wednesday following recent selling pressure. Equities markets were buoyed as China got some upbeat economic data Wednesday when the Caixin purchasing managers’ index (PMI) came in at 52.2 in March from 51.2 in February. A reading above 50.0 suggests expansion in the sector. A short-covering and bargain-hunting rally in crude oil prices Wednesday also put some risk appetite back into the marketplace. Crude prices hit a four-week low on Tuesday. Nymex crude oil prices were hovering above $38.00 a barrel in afternoon U.S. trading. U.S. stock indexes were solidly higher in afternoon trading.

Technically, June gold futures prices closed near mid-range. Gold bulls still have the overall near-term technical advantage. However, a three-week-old downtrend is in place on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,246.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of 1,207.70. First resistance is seen at today’s high of $1,233.80 and then at this week’s high of $1,238.80. First support is seen at this week’s low of $1,217.50 and then at last week’s low of $1,210.30. Wyckoff’s Market Rating: 6.0

May silver futures prices closed near mid-range today. The silver market bears have the slight overall level near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.17 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 this week’s high of $15.22 and then at $15.40. Next support is seen at this week’s low of $14.895 and then at last week’s low of $14.785. Wyckoff's Market Rating: 4.5.

May N.Y. copper closed up 45 points at 214.25 cents today. Prices closed near mid-range today and hit a five-week low early on today. The copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the March high of 232.35 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 205.00 cents. First resistance is seen at this week’s high of 217.30 cents and then at 220.00 cents. First support is seen at today’s low of 213.05 cents and then at 210.00 cents. Wyckoff's Market Rating: 3.0.

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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