Gold Price Weaker On Profit Taking And On Rebounds In Equities, U.S. Dollar
New York (Mar 28) Gold prices ended a choppy, two-sided trading session slightly lower Tuesday. A solid rebound in the U.S. stock market from its recent slide helped to pressure the safe-haven metal today. A higher U.S. dollar index on this day was also a negative for the precious metals. Gold prices also saw a bit of profit taking from recent gains that pushed prices to a four-week high Monday. Silver saw decent gains Tuesday and hit a four-week high. Gold and silver bulls are holding the slight near-term technical advantage at present. April Comex gold was last down $1.50 an ounce at $1,254.10. May Comex silver was last up $0.122 at $18.23 an ounce.
Global stock markets were mostly firmer Tuesday, on corrective bounces from recent selling pressure. U.S. stock indexes were holding solid gains in afternoon trading Tuesday. Traders and investors are debating whether the recent downside pressure in stock markets is the end of the “Trump rally” that had been in place since the U.S. president was elected in November. Or, are the recent slides in stock indexes just normal corrective pullbacks in bull markets that still have more room to run? A better conclusion on this matter can be made come the close of trading on Friday. Beneficiaries of the stock markets’ recent declines have been the precious metals markets.
The key outside markets on Tuesday saw the U.S. dollar index higher on a technical bounce after scoring a 4.5-month low on Monday. The greenback bears still have the technical advantage as prices are in a downtrend on the daily bar chart. Meantime, Nymex crude oil prices were also firmer Tuesday, on some short covering from recent losses. However, the oil market bears remain in near-term technical control. Precious metals prices have been supported by the weaker greenback, but the declines in oil prices have tempered their rallies.
Technically, April gold futures prices closed near mid-range today. The gold bulls have the slight overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at this week’s high of $1,261.00 and then at the February high of $1,264.90. First support is seen at this week’s low of $1,245.50 and then at $1,240.00. Wyckoff's Market Rating: 5.5
May silver futures prices closed nearer the session high and hit four-week high today. The silver market bulls have gained the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $18.54 an ounce.
Source: KitcoNews
