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Gold pulls back as short-term, chart-based sellers step in

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(Kitco News) - Gold prices are lower in midday U.S. trading Wednesday, pressured by shorter-term futures bears pressing their case on the sell side of a market that is still in a near-term technically bearish posture. June gold futures were last down $11.10 at $1,736.50 and May Comex silver was last up $0.024 at $25.45 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are mixed to higher at midday, with the S&P and Nasdaq hitting record highs today. Volatility in stock markets remains low, which is favoring the equities bulls. The generally upbeat trader and investor attitudes in the market place are continuing to squelch the safe-haven metals market bulls.

The key outside markets today see the U.S. dollar index down. The greenback bulls have faded recently. Nymex crude oil prices are sharply higher, hit a three-week high and are trading around $63.25 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.63%. For perspective the German 10-year bund yield is presently minus 0.295% and the 10-year U.K. gilt yield is trading at 0.774%.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bears have the overall near-term technical advantage but recent price action does suggest a market bottom is in place and that prices can trade at least sideways in the near term. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at today’s high of $1,750.70 and then at the April high of $1,759.40. First support is seen at this week’s low of $1,723.20 and then at last week’s low of $1,721.60. Wyckoff's Market Rating: 3.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears still have the overall near-term technical advantage. Prices are still in a 10-week-old downtrend on the daily bar chart, but now just barely. 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 the March low of $23.74. First resistance is seen at last week’s high of $25.675 and then at $26.00. Next support is seen at $25.00 and then at this week’s low of $24.68. Wyckoff's Market Rating: 3.5.

May N.Y. copper closed up 945 points at 412.55 cents today. Prices closed near the session high today. The copper bulls have the overall near-term technical advantage. However, prices have been trending mildly lower for six weeks. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 425.00 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 the April high of 416.00 cents and then at 420.00 cents. First support is seen at today’s low of 402.95 cents and then at this week’s low of 398.80 cents. Wyckoff's Market Rating: 6.5.

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.