Gold Hits 5-Mo. High On Safe-Haven Demand Amid Geopolitical Jitters
(Kitco News) -Gold prices were ending the U.S. day session solidly up and hit a five-month high Tuesday. Buy stop orders were triggered in the futures market in early U.S. trading when prices pushed above last week's high and also moved above the key 200-day moving average. Increasing risk aversion in the marketplace early this week has also propelled the safe-haven metal. June Comex gold was last up $17.60 an ounce at $1,271.60. May Comex silver was last up $0.32 at $18.235 an ounce.
U.S.-North Korea tensions are on the rise as U.S. warships steam toward waters off the Korean peninsula. U.S. and Russian government officials are also meeting early this week, after the U.S. sent 59 Tomahawk missiles into Syria last week. World stock markets have become a bit more wobbly in recent sessions, including selling pressure in the U.S. equities market Tuesday, and that's also benefitting the safe-haven gold market.
The key outside markets on Tuesday were also bullish for the precious metals markets. The U.S. dollar index was lower on a downside correction after hitting a nearly four-week high Monday. The greenback bulls still have the overall near-term technical advantage. Meantime, Nymex crude oil prices were up and hit a four-week high Tuesday. The oil bulls have the overall near-term technical advantage.
(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)
Technically, June gold futures prices closed nearer the session high today. The gold bulls have the overall near-term technical advantage and gained fresh power today. 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 $1,241.50. First resistance is seen at today’s high of $1,275.90 and then at $1,280.00. First support is seen at $1,268.10 and then at 1,260.00. Wyckoff's Market Rating: 6.5
May silver futures prices closed nearer the session high today. The silver market bulls have the overall near-term technical advantage and regained some technical strength today. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $18.54 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at today’s high of $18.315 and then at $18.54. Next support is seen at $18.00 and then at this week’s low of $17.735. Wyckoff's Market Rating: 6.0.
May N.Y. copper closed up 45 points at 260.85 cents today. Prices closed near mid-range today. The copper bulls have the slight overall near-term technical advantage but trading has turned choppy again. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 272.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 255.85 cents. First resistance is seen at this week’s high of 264.55 cents and then at 268.90 cents. First support is seen at today’s low of 258.30 and then at 255.85 cents. Wyckoff's Market Rating: 5.5.