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Gold Weaker Amid Return Of Risk Appetite, Firmer U.S. Dollar

Kitco News

(Kitco News) - Gold prices were ending the U.S. day session moderately lower Thursday. The world marketplace quickly returned to a more robust risk appetite today, as evidenced by rallying stock markets. A higher U.S. dollar index today that scored a five-week high also was a negative element for the precious metals markets. June Comex gold futures were last down $10.40 an ounce at $1,329.90. May Comex silver was last up $0.136 at $16.39 an ounce.

World stock markets were mostly higher today. U.S. stock indexes were holding good gains early Thursday afternoon.

Fears have somewhat eased regarding a potential U.S.-China trade war. Traders tend to initially factor in worst-case scenarios for expected events and then ratchet down those expectations. A couple of President Trump’s economic advisors also have played down a full-blown trade war between the U.S. and China. Still, there are no strong signs the U.S. and China will not proceed with their intended trade sanctions on each other. In the near term, look for more market volatility coming from this situation. Such should be a positive for the gold and silver markets.

Traders are turning their attention to Friday morning’s important U.S. employment situation report for March from the Labor Department. The key non-farm payrolls number is forecast to come in at up 178,000. Wednesday’s ADP jobs number came in much higher than expected, at up 241,000, which hints Friday’s job number may also come in hot.

Live 24 hours gold chart [Kitco Inc.]

Technically, gold futures bulls still have the slight overall near-term technical advantage, but trading remains choppy. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,362.60. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,309.30. First resistance is seen at today’s high of $1,338.70 and then at $1,350.00. First support is seen at $1,325.00 and then at $1,320.00. Wyckoff's Market Rating: 5.5

Live 24 hours silver chart [ Kitco Inc. ]

The silver bears have regained the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 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 Wednesday’s high of $16.515 and then at this week’s high of $16.68. Next support is seen at the March low of $16.10 and then at $16.00. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed up 600 points at 307.05 cents today. Prices closed nearer the session high today. The copper bears still have the overall near-term technical advantage. Prices are still in a seven-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 315.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the September low of 293.25 cents. First resistance is seen at today’s high of 308.80 cents and then at 310.00 cents. First support is seen at 305.00 cents and then at today’s low of 301.35 cents. Wyckoff's Market Rating: 4.0.

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