Gold Treads Water As U.S. Stocks Stage Strong Rally
(Kitco News) - Not too shabby. The U.S. stock market put in a very strong performance Tuesday but gold held its own anyway and traded just above and below unchanged in early-afternoon dealings. A lower U.S. dollar index and higher crude oil prices today worked in favor of the precious metals market bulls. April gold futures were last up $1.10 an ounce at $1,313.00. March Comex silver was last down $0.02 at $15.66 an ounce.
Risk appetite in the marketplace this week remains keener, what with no major geopolitical events in play at present. That is limiting buying interest in safe-haven gold and silver markets.
Traders and investors were cheered to see reports the Democrats and President Trump may be close to reaching a formal agreement on a budget that would avoid another government shutdown later this week. The reports said a tentative agreement was reached on Monday.
The U.S. dollar index today backed off following recent strong gains that pushed the index to a two-month high overnight. Nymex crude oil prices are trading around $53.50 a barrel. The oil market has been trading sideways for two weeks, as stiff chart resistance at and just above $55.00 has stalled an uptrend.
Focus of the marketplace this week is also on U.S.-China high-level trade talks taking place in Beijing. U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer will attend the talks, likely to take place with them present later this week. Many traders and investors are upbeat that a deal can be reached by the March 1 deadline.
Technically, April gold futures prices closed near mid-range today. The bulls have the overall near-term technical advantage. A 2.5-month-old price uptrend is still in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,331.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at this week’s high of $1,318.70 and then at last week’s high of $1,323.60. First support is seen at last week’s low of $1,306.40 and then at $1,300.00. Wyckoff's Market Rating: 6.5
March silver futures prices closed nearer the session low today. The silver bulls have the overall near-term technical advantage amid a two-month-old price uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $15.195. First resistance is seen at this week’s high of $15.83 and then at last week’s high of $15.935. Next support is seen at last week’s low of $15.635 and then at $15.50. Wyckoff's Market Rating: 6.5.
March N.Y. copper closed down 170 points at 277.25 cents today. Prices closed near mid-range. The copper bulls have the slight overall near-term technical advantage. Prices have been trending higher for six weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 265.00 cents. First resistance is seen at today’s high of 279.60 cents and then this week’s high of 281.30 cents. First support is seen at today’s low of 2.7575 cents and then at 272.50 cents. Wyckoff's Market Rating: 5.5.