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(Kitco News) - Comex gold futures prices ended the U.S. day session modestly higher Wednesday. The market saw an upside corrective rebound and some bargain-hunting buying interest following recent strong selling pressure that drive prices to a six-week low on Tuesday. The key “outside markets” were mildly bullish for the precious metals markets Wednesday, as the U.S. dollar index was weaker and crude oil prices were higher. April gold last traded up $11.30 at $1,683.40 an ounce. Spot gold was last quoted up $7.90 an ounce at $1,683.00.  May Comex silver last traded up $0.602 at $33.385 an ounce.
                                          
Reports that the much-anticipated Greek bond/debt swaps proceeded in an orderly fashion helped to support the commodity markets Wednesday, including the precious metals. However, recent weak economic data coming out of the EU has raised worries about the EU slipping back into economic recession. The EU debt crisis will not be resolved any time soon and it remains a major underlying bullish factor for safe-haven gold.

The U.S. dollar index was slightly lower Wednesday, which was supportive for the precious metals. However, the greenback bulls have gained some upside near-term technical momentum recently. Meantime, Nymex crude oil futures prices traded higher Wednesday, which was also a positive factor for gold and silver. The U.S. dollar index and crude oil will remain two important outside market forces that will have a daily impact on the precious metals markets.

The London P.M. gold fixing was $1,677.50 versus the previous P.M. fixing of $1,669.00.

Technically, April gold futures prices closed nearer the session high Wednesday. Near-term technical damage has been inflicted recently. The bulls need to show more power soon to avoid more chart damage. The bulls’ next upside price breakout objective is to produce a close above solid technical resistance at $1,727.30. Bears' next near-term downside price objective is closing prices below solid technical support at $1,650.00. First resistance is seen at $1,688.40 and then at $1,700.00. First support is seen at Wednesday’s low of $1,671.70 and then at this week’s low of $1,663.40. Wyckoff's Market Rating: 5.5.

The gold market bulls can take solace in the fact that no longer-term chart damage has occurred, and from a longer-term perspective, the recent sell off is just one more downside correction in a price trend that remains solidly up.

May silver futures prices closed nearer the session high Wednesday and saw a corrective upside bounce after hitting a six-week low on Tuesday.  Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $35.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $31.00. First resistance is seen at Wednesday’s high of $33.61 and then at $34.00. Next support is seen at $33.00 and then at Wednesday’s low of $32.755. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed up 270 points 376.45 cents Wednesday. Prices closed nearer the session high on a corrective rebound from strong selling pressure Monday and Tuesday. The key “outside markets” were bullish for copper Wednesday, as the U.S. dollar index was weaker while crude oil prices were higher. Copper bulls have the overall near-term technical advantage, but need to show more power soon. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 390.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of 370.25 cents. First resistance is seen at Wednesday’s high of 378.60 cents and then at 380.00 cents. First support is seen at 373.65 cents and then at Wednesday’s low of 371.40 cents. Wyckoff's Market Rating: 5.5.

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By Jim Wyckoff contributing to Kitco News; jim@jimwyckoff.com

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