Gold Price Closes at 3-Week Low Close on Technical Selling, Upbeat U.S. Housing Data
New York (Apr 22) Gold prices ended the US day session solidly lower and closed at a three-week low close Wednesday. Chart-based sellers were active in gold and silver today, including sell-stop orders being triggered in the futures markets. A positive U.S. existing home sales report also prompted downside price pressure on the metals. June Comex gold was last down $16.60 at $1,186.50 an ounce. May Comex silver was last down $0.203 at $15.805 an ounce.
Gold prices extended early losses when it was reported U.S. existing home sales rose at the strongest pace in a year and a half in March. The U.S. dollar index rebounded will off its low on the news, and the gold market in turn extended its early losses. The housing news also falls into the camp of those Fed watchers who expect a U.S. interest rate cut coming sooner rather than later. Still, recent U.S. economic data has been a mixed bag overall—either stronger or weaker than market forecasts.
Wall Street Journal reporter Jon Hilsenrath said in a story Wednesday the Federal Reserve’s timing on an interest rate hike depends on two things: the value of the U.S. dollar and global economic growth prospects. Boston Fed official Rosengren echoed the same in remarks Wednesday. The FOMC meets next week to discuss U.S. monetary policy. The dollar (U.S. dollar index) as a key “outside market” has been important for most markets on a daily trading basis for years. However, just recently the greenback has become a dominant daily market factor for many markets.
The other key “outside market” saw crude oil prices slightly lower. However, crude prices are still in a four-week-old uptrend on the daily bar chart and hovering not far below a four-month high scored last week.
The London P.M. gold fix is $1,189.25 versus the previous A.M. fixing of $1,202.40.
Technically, June gold futures prices closed nearer the session low and closed at a three-week low close today. Gold bears have the firm overall near-term technical advantage and gained more power today. A three-week-old downtrend is in place on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,210.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,178.20. First resistance is seen at $1,190.00 and then at $1,200.00. First support is seen at today’s low of $1,185.00 and then at $1,178.20. Wyckoff’s Market Rating: 2.5
May silver futures prices closed nearer the session low and hit a four-week low today. Silver bears still have the solid near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.51 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $15.26. First resistance is seen at $16.00 and then at $16.165. Next support is seen at today’s low of $15.655 and then at $15.50. Wyckoff's Market Rating: 2.0.
May N.Y. copper closed down 290 points at 267.35 cents today. Prices closed nearer the session low and hit a five-week low today. The copper market bears have regained the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the April high of 283.10 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 260.00 cents.
Source: KirtcoNews
