Gold Price Pares Losses As Traders Buy The Dip
New York (April 10) Gold prices erased earlier losses and were trading near steady in early afternoon dealings Monday. Some mild profit-taking from the shorter-term futures traders gave way to a “buy-the-dip” mentality amid technical charts that still favor the bulls. Weaker U.S. equity and U.S. dollar index prices also worked in favor of the precious metals bulls on this day. Gold prices last Friday scored a five-month high. June Comex gold was last up $0.30 an ounce at $1,257.50. May Comex silverr was last down $0.206 at $17.945 an ounce.
World stock markets were narrowly mixed in quieter overnight trading. U.S. stock indexes started Monday’s session near-steady but then lost altitude as the session progressed.
The world marketplace is not showing a significant reaction to the weekend news that the U.S. is sending a Navy task force to waters off of North Korea, to conduct exercises with the South Korean navy. Still, the tensions between North Korea and the U.S. are on the rise and this matter could be the next major geopolitical crisis that would have a major impact on world markets, and be bullish for the gold market.
Fed Chair Janet Yellen delivers a speech late Monday in Michigan. She could make some market-sensitive comments but it’s not likely.
The key outside markets on Monday saw the U.S. dollar index weaker on a corrective pullback after hitting a nearly four-week high overnight. The greenback bulls still have the overall near-term technical advantage. Meantime, Nymex crude oil prices were firmer and trading near last Friday’s four-week high. The oil bulls have upside technical momentum to suggest prices can at least trade sideways, if not sideways to higher, in the near term.
Technically, June gold futures prices closed nearer the session high today. The gold bulls have the overall near-term technical advantage. However, Friday’s push to a five-month high and then a low-range close suggests the bulls need a rest. More upside price action this week would confirm a bullish upside “breakout” from the recent trading range. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,273.30. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,241.50. First resistance is seen at $1,264.20 and then at $1,270.00. First support is seen at $1,250.00 and then at 1,245.40. Wyckoff's Market Rating: 6.0
Live 24 hours silver chart [ Kitco Inc. ]
May silver futures closed prices closed nearer the session high today. The silver market bulls have the slight overall near-term technical advantage, but last Friday’s bearish weekly low close suggests the bulls are tired. 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
