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

New York (Apr 14)  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 US 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%.

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.

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