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Gold sees slight gains as USDX slumps

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(Kitco News) - Gold prices are slightly up in midday U.S. trading Monday, supported by a wilting U.S. dollar index to start the trading week. However, a big drop in crude oil prices and good gains in the U.S. stock market did limit the upside in the safe-haven metal. June gold futures were last up $1.60 at $1,730.00 and May Comex silver was last down $0.123 at $24.825 an ounce.

Many global stock markets were closed for the Easter holiday Monday, as well as for a holiday in Asia. U.S. stock indexes are higher at midday, with the Dow and S&P 500 indexes hitting record highs. Trader and investor attitudes are more positive following a very strong U.S. jobs report last Friday (when U.S. markets were closed) that showed a gain of 916,000 in non-farm payrolls in March. Also, President Biden is pushing his U.S. economic rescue package, called the American Jobs Plan, at a cost of $2.25 trillion over eight years.

The key outside markets today see the U.S. dollar index solidly down but still in a near-term price uptrend on the daily bar chart. Nymex crude oil prices are solidly lower trading around $59.00 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.72%.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bears still have the overall near-term technical advantage. However, bulls have gained a bit of momentum and more good buying interest this week would confirm a bullish double-bottom reversal pattern on the daily bar chart, to suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,756.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $1,676.20. First resistance is seen at today’s high of $1,734.40 and then at $1,740.00. First support is seen at today’s low of $1,721.60 and then at $1,710.00. Wyckoff's Market Rating: 3.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $25.14 and then at $25.50. Next support is seen at today’s low of $24.66 and then at $24.27. Wyckoff's Market Rating: 3.0.

May N.Y. copper closed up 1,580 points at 414.80 cents today. Prices closed near the session high today. The copper bulls have the firm overall near-term technical advantage and gained fresh power today. A five-week-old downtrend on the daily bar chart was negated today. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 437.55 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at today’s high of 416.00 cents and then at 420.00 cents. First support is seen at 410.00 cents and then at 405.00 cents. Wyckoff's Market Rating: 7.0.

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.