Gold Lifted On Some Safe-Haven Demand, Weaker U.S. Dollar
(Kitco News) - Gold prices were ending the U.S. day session with moderate gains early Tuesday afternoon. The precious metals saw some safe-haven demand due to increasing concerns about turmoil in the Trump administration. A lower U.S. dollar index on this day also worked in favor of the metals bulls. April Comex gold futures were last up $5.70 an ounce at $1,326.50. May Comex silver was last up $0.069 at $16.610 an ounce.
News this morning that U.S. Secretary of State Rex Tillerson was fired by President Trump prompted some fresh safe-haven in gold and silver markets. The firing of a Trump cabinet official comes on the heels of Trump’s chief economic advisor quitting last week. Other lower-level Trump administration officials have also hit the exit doors recently. Now more than ever there is the perception that the Trump presidency is in chaos.
The key economic data point of the day Tuesday saw the U.S. consumer price index report for February come in at up 0.2%, and up 2.2%, year-on-year. Those numbers were in line with market expectations. The “core” CPI number—which excludes food and energy—was also up 0.2% from January and up 1.8%, year-on-year. The metals markets were supported on the news because the inflation data was not deemed “too hot.”
The key “outside markets” on Tuesday saw the U.S. dollar index lower, partly on the Tillerson news and on the tame U.S. CPI report. Meantime, Nymex crude oil prices were lower. Rising U.S. shale oil production and some reported discord among OPEC leaders Saudi Arabia and Iran have put the crude oil market on the defensive recently.
Technically, April gold futures prices were nearer the session high in late trading and scoring a bullish “outside day” up on the daily bar chart 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 $1,328.30 and then at $1,335.00. First support is seen at $1,320.00 and then at last week’s low of $1,313.20. Wyckoff's Market Rating: 5.5
May silver futures prices were near mid-range at midday today. The silver bears have the 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 $16.75 and then at the March high of $16.895. Next support is seen at last week’s low of $16.33 and then at the March low of $16.16. Wyckoff's Market Rating: 4.0.
May N.Y. copper closed up 105 points at 313.40 cents today. Prices closed nearer the session high today. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 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 this week’s high of 315.55 cents and then at 318.00 cents. First support is seen at today’s low of 310.24 cents and then at 307.50 cents. Wyckoff's Market Rating: 5.5.