Powerful Greenback Pressures Precious Metals Prices
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(Kitco News) - Gold prices are trading slightly lower in early-afternoon U.S. action Thursday, and did hit another four-month low today. A strong U.S. dollar that saw the dollar index hit new high for the year today is working against the precious metals market bulls. June gold futures were last down $1.60 an ounce at $1,275.20. May Comex silver was last up $0.006 at $14.945 an ounce.
U.S. economic data out today was a mixed bag but mostly upbeat, including jobless claims falling by 5,000 in the latest reporting week. March U.S. retail sales beat expectations and came in at up 1.6%. Gold and silver prices initially down-ticked a bit on the earlier reports’ releases but then moved back to near unchanged levels on the day, where they now remain.
U.S. and many other nations markets are closed on Friday for the Good Friday Easter holiday.
The marketplace, especially the FOREX sector, is keeping a very close eye on the Turkish lira, which has weakened significantly against the U.S. dollar recently. There are concerns about Turkey’s low foreign currency reserves that would have to be used to defend the lira in case speculative FOREX traders mounted a selling attack on it.
The U.S.-China trade negotiations are continuing and apparently the world’s two largest economies are moving closer to a final agreement. There is talk in the marketplace that President Trump and Chinese President Xi Jinping could meet next month to seal the deal.
The other key outside markets today finds Nymex crude oil prices are slightly down and trading around $63.50 a barrel.
Technically, June gold futures prices closed nearer the session low today. The bears have the overall near-term technical advantage. A two-month-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 Wednesday’s high of $1,282.10 and then at Tuesday’s high of $1,291.70. First support is seen at $1,270.00 and then at $1,260.00. Wyckoff's Market Rating: 4.0.
May silver futures prices closed near mid-range. The silver bears have the overall near-term technical advantage. A two-month-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 this week’s high of $15.055 and then at $15.25. 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 450 points at 292.25 cents today. Prices closed near mid-range today on profit taking after hitting a 9.5-month high on Wednesday. The copper bulls still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 300.00 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 today’s high of 296.40 cents and then at this week’s high of 299.55 cents. First support is seen at today’s low of 290.30 cents and then at the April low of 288.35 cents. Wyckoff's Market Rating: 6.5.