Gold prices ended the U.S. day session modestly lower in quieter trading Monday. The market saw chart consolidation and a technical pullback following Friday’s gains. June Comex gold last traded down $3.60 at $1,572.30 an ounce. Spot gold was last quoted down $9.60 at $1,572.25. May Comex silver last traded down $0.055 at $27.165 an ounce.
A light slate of U.S. economic data Monday failed to significantly move the gold and silver markets’ prices. Traders and investors are looking for fresh fundamental inputs to drive these markets.
The market place has recently received a shot of confidence the easy money policies of the major central banks of the world will remain in place for quite some time to come, and that is a bullish underlying factor for hard assets like gold and silver. The weaker-than-expected U.S. jobs report last Friday, the fresh Bank of Japan’s monetary stimulus announcement last week, and the still-very-weak European Union economic and financial situation all argue for the Federal Reserve, the Bank of Japan and the European Central Bank to keep their feet on the easy money accelerator.
North Korea and its nuclear threats toward the U.S. and South Korea continue to attract some attention of the market place. However, there is now the feeling among many that the North Koreans’ trash-talking is old hat and only talk. The U.S. said last week it is taking North Korea’s threats seriously and has dispatched military assets to the region surrounding North Korea. The market place has digesting the news fairly well. However, that could change very quickly if the North Korea situation turns from just rhetoric to military conflict. The wild card in the matter is a new, young leader of the North Korean regime that is unpredictable.
The U.S. dollar index was higher Monday. The greenback bulls still have the overall technical advantage. Meantime, Nymex crude oil futures prices were higher Monday on short covering. The crude oil bears still have some downside near-term technical momentum on their side. These two key “outside markets” will continue to have a significant daily influence on gold and silver prices.
The London P.M. gold fix is $1,575.00 versus the previous P.M. fixing of $1,568.00
Technically, June gold futures prices closed near mid-range Monday and saw a corrective pullback and some consolidation following Friday’s gains. The gold bears have the solid overall near-term technical advantage. Prices are in a six-month-old downtrend on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,600.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,525.00. First resistance is seen at Monday’s high of $1,582.90 and then at $1,590.00. First support is seen at Monday’s low of $1,566.60 and then at $1,562.50. Wyckoff’s Market Rating: 2.5
May silver futures prices closed nearer the session low Monday and are hovering near a nine-month low. The silver bears have the solid overall near-term technical advantage. Prices are in a six-month-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $28.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $26.00. First resistance is seen at Monday’s high of $27.465 and then at $27.925. Next support is seen at $27.00 and then at Friday’s low of $26.73. Wyckoff's Market Rating: 2.0.
May N.Y. copper closed up 265 points at 337.05 cents Monday. Prices closed near mid-range and saw short covering in a bear market. Prices last week hit a contract low. Copper bears still have the solid overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at last week’s high of 340.30 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 330.00 cents. First resistance is seen at Monday’s high of 339.40 cents and then at 342.50 cents. First support is seen at 335.00 cents and then at Monday’s low of 333.90 cents. Wyckoff's Market Rating: 2.0.
(Kitco News) - By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org