Gold Ends Firmer As Bulls Maintain Upside Technical Momentum

(Kitco News) – Gold prices ended the U.S. day session with modest gains and hit a two-week high in quieter dealings Monday. Some backing and filling on the charts occurred following recent good gains in both markets. The gold and silver bulls still have technical momentum on their side to suggest prices can trade at least sideways, if not sideways to higher in the near term. April Comex gold was last up $3.10 an ounce at $1,233.40. May Comex silver was last up $0.022 at $17.435 an ounce.

There was no fresh, significant news in the marketplace Monday to drive the metals markets. Traders and investors were still digesting the Group of 20 finance ministers meeting in Germany over the weekend. Many agreed this meeting saw world trade prospects diminish somewhat amid the more nationalistic tone coming out of the U.S.

The key outside markets on Monday saw the U.S. dollar index trade slightly higher in the afternoon, but visited both sides of unchanged and hit a six-week low overnight. The greenback bears still have some technical momentum on their side to suggest more selling pressure this week. Meantime, Nymex crude oil prices were lower today. The crude oil bears have the firm near-term technical advantage following the recent steep downdraft in prices.

(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed near mid-range today. The recent rebound in prices suggests that a near-term market bottom is in place and that prices can at least trend sideways in the near term. The gold bears do still have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at today’s high of $1,235.50 and then at $1,240.00. First support is seen at today’s low of $1,228.80 and then at $1,225.00. Wyckoff’s Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures prices closed near mid-range. While the silver market bears still have the overall near-term technical advantage, the recent rebound suggests a near-term market bottom is in place and that prices can trend at least sideways in the near term. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at last week’s high of $17.585 and then at $17.82. Next support is seen at $17.23 and then at $17.00. Wyckoff’s Market Rating: 4.0.

May N.Y. copper closed down 235 points at 266.85 cents today. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart today. The copper bulls have the slight overall near-term technical advantage. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 272.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 255.85 cents. First resistance is seen at today’s high of 270.00 cents and then at 271.00 cents. First support is seen at today’s low of 265.20 and then at 262.50 cents. Wyckoff’s Market Rating: 5.5.