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Gold, Silver Prices Lose Altitude Amid US Dollar, Stock Mkt Rallies

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(Kitco News) - Gold and silver prices are modestly up at midday Thursday, but well down from their daily highs that saw three-week highs in earlier U.S. trading. The precious metals bulls were fueled by a surprisingly dovish stance taken by the U.S. Federal Reserve on Wednesday afternoon. However, strong gains in U.S. stock indexes and the U.S. dollar index today tempered some of the bullishness in gold and silver markets. April gold futures were last up $2.30 an ounce at $1,304.00. May Comex silver was last up $0.077 at $15.39 an ounce.

The world marketplace on Thursday was still digesting Wednesday afternoon’s Federal Open Market Committee (FOMC) meeting conclusion and Fed Chairman Powell’s press conference. The Fed struck a surprisingly dovish tone on U.S. monetary policy. The Fed news initially dropped the U.S. dollar index, rallied U.S. Treasury prices and put downside pressure on U.S. and world stock markets. However, traders on Thursday reckoned the U.S. dollar and stock market are still the strongest assets even if the U.S. economy is slowing down a bit.

Palladium prices hit another record high overnight and traded above $1,575.00 an ounce. There are no early chart clues this market is close to topping out.

The world markets are again trying to figure out if the U.S. and China are close to a substantive trade deal. Early-week reports said the U.S. and China were moving closer to a formal trade agreement. U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer are traveling to China next week for high-level discussions. However, on Wednesday President Trump said U.S. tariffs on China won’t be lifted right away even if a trade deal is reached soon.

The other key outside market today sees Nymex crude oil prices slightly lower and trading around $60.00 a barrel. Oil prices hit a four-month high overnight.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures bulls have the overall near-term technical advantage. A three-week-old uptrend is 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 $1,330.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,280.80. First resistance is seen at $1,310.00 and then at today’s high of $1,320.20. First support is seen at $1,300.00 and then at this week’s low of $1,298.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures prices closed near the session low after hitting a three-week high early on today. The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $14.985. First resistance is seen at $15.55 and then at today’s high of $15.65. 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: 6.5.

May N.Y. copper closed down 245 points at 289.65 cents today. Prices closed near the session low and scored a bearish “outside day” down on the daily bar chart today. The copper bulls still 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 280.00 cents. First resistance is seen at 295.00 cents and then at 297.75 cents. First support is seen at the March low of 287.45 cents and then at 285.00 cents. Wyckoff's Market Rating: 6.5.

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