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Gold Down On More Profit Taking, Bearish Outside Market Forces

(Kitco News) - Gold prices ended the U.S. day session lower Monday, on some more downside corrective pressure and profit taking after prices last week hit nearly three-month highs. Bearish outside markets—lower crude oil prices and a firmer U.S. dollar index—worked against the precious metals bulls on this day. Rallying world stock markets that are at or near record or multi-year highs are also a negative element for safe-haven gold. April Comex gold was last down $10.30 an ounce at $1,225.50. March Comex silver was last down $0.108 at $17.825 an ounce.

Asian and European stock markets were mostly higher Monday. U.S. stock indexes touched new record highs Monday.

The key “outside markets” for the precious metals on Monday saw the U.S. dollar index trade slightly lower early on but then rallied to well above unchanged as the session progressed. The greenback bulls have some upside momentum as prices have been trending higher for almost two weeks.

Meantime, Nymex crude oil prices were solidly lower Monday. Oil prices are back in a sideways trading range that has bound the market for weeks. Look for more sideways and choppy trading in the crude oil market in the near term.

There was no major U.S. economic data due out Monday. However, the data pace picks up rapidly Tuesday, including Fed Chair Janet Yellen speaking on monetary policy before the U.S. Senate.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed nearer the session low. The gold bulls still have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,234.30 and then at last week’s high of $1,246.60. First support is seen at today’s low of $1,220.30 and then at $1,210.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures closed down $0.108 at $17.83 today. Prices closed nearer the session low on mild profit taking after hitting a three-month high last Friday. The silver market bulls still have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at Friday’s high of $18.02 and then at $18.25. Next support is seen at Friday’s low of $17.545 and then at $17.26. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed up 210 points at 278.90 cents today. Prices closed nearer the session low after hitting a 21-month high early on today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at today’s high of 282.30 cents and then at 285.00 cents. First support is seen at 275.00 and then at 270.00 cents. Wyckoff's Market Rating: 8.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

 

 

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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