Gold, Silver Prices Slightly Down On Scant Risk Aversion, Firmer Greenback
Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.
(Kitco News) - Gold and silver prices ended the U.S. day session with modest losses Monday. Waning risk aversion in the market place early this week—evidenced by a solid rally in the U.S. stock market today--worked against the safe-haven metals. Also, a firmer U.S. dollar index to start the trading week was a negative element for the metals markets. April Comex gold futures were last down $2.60 an ounce at $1,320.80.May Comex silver was last down $0.041 at $16.425 an ounce.
The threat of a global trade war did prompt some safe-having buying in the gold and silver markets in overnight trading, after U.S. President Trump late last week announced he was slapping import tariffs on steel and aluminum. However, as the U.S. day session progressed, those worries seemed to subside as the stock market rallied.
Italian elections on Sunday that produced no clear winner also threw some uncertainty into the marketplace. Italy is the European Union’s third-largest economy. However, traders and investors did not view this matter as significantly markets-moving—at least not for now.
The other key outside market on Monday morning saw Nymex crude oil prices higher and trading just above $62.00 a barrel. If the oil market can stabilize and start to trend higher again, the precious metals market would likely see some buying support develop. Crude oil is arguably the leader of the raw commodity sector.
Technically, April gold futures prices closed nearer the session low today. The gold bulls and bears are on a level overall near-term technical playing field. However, prices are in a six-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,342.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at today’s high of $1,328.90 and then at $1,335.00. First support is seen at #1,315.00 and then at $1,309.00. Wyckoff's Market Rating: 5.0
May silver futures prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart. The silver bears have the overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $17.04 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 $16.62 and then at last week’s high of $16.785. Next support is seen at today’s low of $16.37 and then at last week’s low of $16.16. Wyckoff's Market Rating: 3.0.
May N.Y. copper closed up 50 points at 312.95 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage, but have faded recently. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 329.05 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 304.65 cents. First resistance is seen at 314.75 cents and then at 318.60 cents. First support is seen at today’s low of 309.55 cents and then at 307.50 cents. Wyckoff's Market Rating: 6.0.