Gold, Silver Gain On Declining Dollar, Bargain-Basement Buying
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(Kitco News) - Gold and silver prices ended the U.S. day session solidly higher Tuesday. A sell-off in the U.S. dollar index on this day prompted renewed buying interest in the precious metals. A feature in the gold and silver futures today was bargain hunting following recent selling pressure. Also, short covering, or the buying back of previously sold (short) positions, by shorter-term traders, was featured in the gold and silver futures markets today. Importantly, an uptick in investor risk appetite today did not negatively impact safe-haven gold and silver. April Comex gold futures were last up $15.40 an ounce at $1,335.40. May Comex silver was last up $0.368 at $16.78 an ounce.
World stock markets, including the U.S. stock indexes, were mostly higher today, partly on hopes that the U.S. plans for import tariffs on steel and aluminum will be rolled back, or at least scaled way down. Several U.S. lawmakers, including the Speaker of the House, have spoken out against President Trump’s protectionist initiative that surprised the marketplace.
Also boosting investor risk appetite today is news overnight that North Korea has reportedly made an overture to South Korea regarding its possible denuclearization. Details are sketchy at this time, but the news is a positive for the world marketplace.
The other key outside market on Tuesday saw Nymex crude oil prices near steady and trading just below $63.00 a barrel.
Technically, April gold futures prices closed nearer the session high today. The gold bulls have regained the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. 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 $1,339.90 and then at last week’s high of $1,342.90. First support is seen at #1,325.00 and then at this week’s low of $1,318.30. Wyckoff's Market Rating: 5.5
May silver futures prices closed nearer the session high today on short covering and bargain hunting. The silver bears still have the slight overall near-term technical advantage. 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 $16.895 and then at $17.00. Next support is seen at $16.50 and then at this week’s low of $16.37. Wyckoff's Market Rating: 4.5.
May N.Y. copper closed up 325 points at 316.05 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. 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 today’s high of 317.80 cents and then at 320.00 cents. First support is seen at today’s low of 312.65 cents and then at this week’s low of 309.55 cents. Wyckoff's Market Rating: 6.5.