(Kitco News) – Gold prices are near steady in midday U.S. trading Tuesday and lost solid overnight gains. Prices overnight and in early U.S. trading were supported by a weaker U.S. dollar index, slightly firmer crude oil prices and a downtick in U.S. Treasury yields. However, as the U.S. day session progressed the USDX rebounded, prompting some profit-taking pressure in gold from the shorter-term futures traders. April gold was last down $0.80 at $2,175.60. May silver was last down $0.281 at $24.61.
U.S. stock indexes are firmer in midday trading and close to their record highs during this major bull market run in equities. This is a bearish element for the precious metals, as a competing asset class.
In other news, the London Metals Exchange has increased margins on copper and aluminum alloy trading in an effort to try to curb speculation in the copper market. “The LME is almost certainly dissuading speculation in copper with long positions now at a two-year high and volumes last week at three-year highs. With many of the world’s traders lining up to propel copper higher the LME is acting early to dampen excessive speculation,” said broker SP Angel.
The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are a bit firmer and trading around $82.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.25%.
Technically, April gold futures bulls still have the solid overall near-term technical advantage. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract and record high of $2,225.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,149.20. First resistance is seen at the overnight high of $2,200.60 and then at the contract high of $2,225.30. First support is seen at this week’s low of $2,164.40 and then at last Friday’s low of $2.158.40. Wyckoff’s Market Rating: 8.0.
May silver futures prices hit a two-week low today. The silver bulls have the overall near-term technical advantage but are fading a bit. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the March high of $25.975. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at $25.00 and then at $25.11. Next support is seen at $24.50 and then at $24.22. Wyckoff’s Market Rating: 6.5
May N.Y. copper closed down 45 points at 401.15 cents today. Prices closed near mid-range. The copper bulls have the firm overall near-term technical advantage but appear tired now. Prices are in a six-week-old uptrend on
the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the March high of 416.40 cents. The next downside price objective for the bears is closing prices below solid technical support at 385.00 cents. First resistance is seen at this week’s high of 404.70 cents and then at last Friday’s high of 406.65 cents. First support is seen at today’s low of 398.10 cents and then at 396.75 cents. Wyckoff’s Market Rating: 7.0.
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