Gold, Silver Prices See Tepid Rebounds At Mid-Week

(Kitco News) – Gold and silver prices are slightly up in early U.S. trading Wednesday, on weak rebounds following selling pressure that Tuesday drove both metals to four-month lows. Scant risk aversion in the world marketplace and a strong U.S. dollar are still weighing heavy on the safe-haven metals. June gold futures were last up $0.90 an ounce at $1,274.20. May Comex silver was last up $0.29 at $14.82 an ounce.

Asian stock indexes were mostly weaker overnight, while the European equities markets traded near steady. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins. The U.S. stock indexes are trending solidly higher and are at or near record and/or multi-month highs. With no major geopolitical hotspots in play at present, focus of traders and investors is on corporate earnings reports, most of which have been upbeat.

In overnight news, the closely watched German Ifo business sentiment index fell in April to 99.2 versus 99.7 in March.

It’s quieter this week on the U.S.-China trade war front. Both sides are set to meet again next week. The U.S. is also discussing trade with Japan and other nations. The European Central Bank today declared the U.S. could be the main victim on trade because of its more aggressive stance toward its major trading partners.

Nymex crude prices on Tuesday pushed to a six-month high of $66.60 a barrel, with Brent crude trading above $74.00. Prices are modestly lower today on some profit taking. The other key outside market today finds the U.S. dollar index near steady and not far below this week’s multi-month high.

U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.

Technically, the gold bears have the overall near-term technical advantage. A two-month-old downtrend line is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at $1,300.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at this week’s high of $1,281.90 and then at $1,285.00. First support is seen at this week’s low of $1,267.90 and then at $1,260.00. Wyckoff’s Market Rating: 3.5

May silver futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the April high of $15.31 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.50. First resistance is seen at $15.00 and then at this week’s high of $15.04. Next support is seen at this week’s low of $14.70 and then at $14.50. Wyckoff’s Market Rating: 3.5.

By Jim Wyckoff
For Kitco News


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