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Gold Pounded To 4-Mo. Low, Bears Gain More Technical Power

Kitco News

(Kitco News) - Gold prices are solidly down and hit a nearly four-month low in early-afternoon U.S. trading Tuesday. “Risk-on” trader and investor attitudes that are seeing monies flowing into stocks are at the same time squelching buying interest in the safe-haven metals markets. Chart-based selling in gold futures is also kicking in this week. June gold futures were last down $14.50 an ounce at $1,276.80. May Comex silver was last down $0.04 at $14.935 an ounce.

Asian and European stock indexes were mostly higher overnight. U.S. stock indexes are higher at midday and have hit new six-month highs. The U.S. indexes are also closing in on their record highs scored last fall. There are presently no major geopolitical issues in the world marketplace to rattle the markets and trader and investor attitudes remains generally upbeat. In the U.S., the world’s largest economy is growing modestly to a bit better, but the Federal Reserve does not appear inclined to raise interest rates. Many reckon that’s a “Goldilocks” scenario for the stock market.

The key outside markets today find the U.S. dollar index modestly up and not far below the recent highs. Meantime, Nymex crude oil prices are firmer and trading around $63.75 a barrel.

The marketplace is awaiting China’s gross domestic product report due out Wednesday morning. Most are expecting upbeat numbers north of 6% annual GDP growth for the world’s second-largest economy.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures prices closed nearer the session low today. The bears have gained the overall near-term technical advantage. A six-week-old downtrend line on the daily bar chart is in place. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at $1,284.90 and then at today’s high of $1,291.70. First support is seen at $1,275.00 and then at $1,270.00. Wyckoff's Market Rating: 4.0.

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures prices closed nearer the session high. Prices Monday hit a 3.5-month low. The silver bears have the overall near-term technical advantage. A seven-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $15.31 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at $15.00 and then at $15.065. Next support is seen at this week’s low of $14.795 and then at $14.75. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed down 25 points at 293.25 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage but trading has been choppy and sideways at higher levels, suggesting that a market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the April high of 298.85 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 283.45 cents. First resistance is seen at last week’s high of 296.20 cents and then at 298.85 cents. First support is seen at this week’s low of 291.65 cents and then at 290.00 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.