Gold, Silver Prices Gain As Greenback Backs Down
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(Kitco News) - Gold and silver prices are moderately higher in early-afternoon U.S. trading Tuesday. A weakening U.S. dollar index and crude oil prices at a four-month high supported the precious metals markets today. April gold futures were last up $4.80 an ounce at $1,306.40. May Comex silver was last up $0.038 at $15.36 an ounce.
Palladium prices jumped to a record high above $1,150 a ton in June futures today, due in part to Russia, the world’s largest producer, banning the export of scrap and tailings of precious metals from May until November.
The key outside markets today saw the U.S. dollar index weaker and at a three-week low. The greenback bulls have faded recently. Meantime, Nymex crude oil prices are modestly down in midday trading, but hit a four-month high overnight.
Risk appetite in the world marketplace remains elevated, as there are no major geopolitical matters jolting the world markets. This element continues to constrain the safe-haven gold and silver markets.
Trader and investor focus is on the FOMC meeting of the Federal Reserve, which begins Tuesday morning and ends Wednesday afternoon with a statement. The FOMC is not expected to change its monetary policy at this meeting. The Fed has become more dovish the past few months. As usual, the marketplace will glean the FOMC statement and Fed Chairman Jerome Powell’s wording for clues on the future path and timing of monetary policy changes.
The unresolved Brexit matter continues simmer on the back burner of the world marketplace. The latest development saw a Member of Parliament block for voting a plan presented by Prime Minister Theresa May. It’s becoming more likely that the U.K.’s exit from the European Union will be a long, drawn-out affair.
Technically, April gold futures prices closed near mid-range again today. The bulls have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,320.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,275.00. First resistance is seen at last week’s high of $1,311.60 and then at $1,317.00. First support is seen at this week’s low of $1,298.00 and then at $1,292.50. Wyckoff's Market Rating: 6.5
May silver futures prices closed near mid-range today. The silver bulls have the overall near-term technical advantage. 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 $15.45 and then at last week’s high of $15.55. Next support is seen at this week’s low of $15.22 and then at last week’s low of $15.135. Wyckoff's Market Rating: 6.0.
May N.Y. copper closed up 165 points at 292.55 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage. Prices are in a 10-week-old uptrend on the daily bar chart. 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 280.00 cents. First resistance is seen at today’s high of 294.40 cents and then at last week’s high of 295.70 cents. First support is seen at this week’s low of 289.90 cents and then at the March low of 2.87.45 cents. Wyckoff's Market Rating: 6.5.