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Gold, Silver Hit By Profit Taking, Stronger Greenback

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(Kitco News) - Gold and silver prices are solidly lower in early-afternoon U.S. trading Thursday. Some profit taking from recent gains was featured today and no significant chart damage occurred from today’s losses. Pressure also came from downbeat economic data coming out of China and by a firmer U.S. dollar index today. April gold futures were last down $13.40 an ounce at $1,295.90. May Comex silver was last down $0.266 at $15.19 an ounce.

China’s industrial output fell to a 17-year low in February, at up just 0.43% from January. Year-on-year, the number was up 5.3%. This report weighed on the gold and silver markets today, as China’s economy is the major metals consumer worldwide.

In the back-and-forth rhetoric on the U.S.-China trade war front, President Trump said Wednesday he is in “no rush” to ink a trade deal with China, and reiterated the deal must meet U.S. demands. The past few days had seen the marketplace more optimistic regarding a trade agreement between the world’s two largest economies getting completed soon. Trump’s comments could also be weighing on the metals markets today.

British lawmakers late Wednesday agreed on another Brexit plan that said the U.K. would not do a “hard Brexit” on March 29, the date for which the U.K. is set to leave the European Union. However, any extension of the Brexit date must get EU approval. The marketplace is reading this as positive that a “soft Brexit” will occur down the road. While somewhat impacting the European markets, the current Brexit uncertainty is not a major element moving world stock and financial markets.

The other outside market today sees Nymex crude oil prices firmer and trading around $58.50 a barrel. Prices hit a four-month high today.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold prices closed nearer the session low today. The bulls still have the overall near-term technical edge but faded today and need to show fresh power soon to keep their advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,320.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,275.00. First resistance is seen at $1,300.00 and then at this week’s high of $1,311.60. First support is seen at this week’s low of $1,290.60 and then at $1,285.60. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures prices closed nearer the session low today. The silver bulls have the slight overall near-term technical advantage but faded today and need to show fresh power soon to keep their edge. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $15.75 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at today’s high of $15.47 and then at this week’s high of $15.55. Next support is seen at today’s low of $15.135 and then at $15.00. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed down 425 points at 289.30 cents today. Prices closed nearer the session low today. The copper bulls have the overall near-term technical advantage. Prices are in a 10-week-old uptrend on the daily bar chart, but now just barely. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 297.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at today’s high of 293.45 cents and then at this week’s high of 295.70 cents. First support is seen at the March low of 2.87.45 cents and then at 285.00 cents. Wyckoff's Market Rating: 6.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.