Gold solidly down on profit taking, rebound in USDX
Gold prices are sharply lower in midday U.S. trading Monday, on some profit-taking pressure from the shorter-term futures traders and as the U.S. dollar index is solidly up today, on a rebound after last week hitting a two-month low. Silver prices are just modestly down. Still, both metals are in firmly bullish technical postures to suggest more upside for prices in the near term. April gold was last down $22.70 at $1,989.20 and May silver is down $0.133 at $24.955.
Global stock markets were mixed overnight. U.S. stock indexes are a bit weaker near midday. It’s a calmer start to the trading week, following a three-day holiday weekend for most traders and investors. The U.S. Labor Department’s March jobs report issued Friday morning came in about as expected, showing a non-farm payrolls rise of 236,000 jobs versus a gain of 311,000 in the February report. Still, Friday’s jobs numbers fall into the camp of the U.S. monetary policy hawks, who want to see further interest rate increases from the Federal Reserve.
The U.S. data point of the week will be Wednesday morning’s consumer price index report for March, which is expected to show an annual rise of 5.1%, compared to a rise of 6.0% in the February report.
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Bank of America is looking for $2,100 gold price by Q2
The key outside markets today see the U.S. dollar index sharply up. Nymex crude oil prices are slightly down and trading around $80.50 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.4%.
Technically, April gold futures prices hit a 12-month high last week. Bulls still have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the all-time high of $2,078.80, scored in March of 2022. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $2,000.00 and then at today’s high of $2,006.60. First support is seen at $1,975.00 and then at $1,965.00. Wyckoff's Market Rating: 8.0
May silver futures prices hit a 12-month high last week. The silver bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.50. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at last week’s high of $25.295 and then at $25.50. Next support is seen at $24.50 and then at $24.25. Wyckoff's Market Rating: 8.0.
May N.Y. copper closed down 440 points at 397.15 cents today. Prices closed near the session low today. The copper bulls have the slight overall near-term technical advantage but have faded recently. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the March high of 417.45 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 382.20 cents. First resistance is seen at today’s high of 403.95 cents and then at 407.15 cents. First support is seen at last week’s low of 399.60 cents and then at 392.60 cents. Wyckoff's Market Rating: 5.5.
By
Jim Wyckoff
For Kitco News
Tim Moseley