Gold, Silver Higher As Greenback Erodes

Jim Wyckoff  

Tuesday May 16, 2017 13:45

(Kitco News) - Gold and silver prices ended the U.S. day session moderately higher Tuesday. A slumping U.S. dollar index that hit a six-month low today is helping to boost the precious metals markets. June Comex gold was last up $6.40 an ounce at $1,236.40. July Comex silver was last up $0.157 at $16.76 an ounce.

Short covering in the gold and silver futures markets (the buying back of previously short, or sold positions) has been featured early this week. Bargain hunters have also stepped in to buy after the recent price weakness.

The marketplace is not paying much attention to the latest controversy in the Trump Administration, amid reports the President told the Russians classified intelligence information.

The geopolitical front remains relatively calm at present, which is bullish for world stock markets and bearish for safe-haven assets like gold. However, there remain serious matters that could flare-up at any moment, including the North Korea-U.S. confrontation and Middle East tensions.

The other key outside market on Tuesday saw Nymex crude oil futures prices trading steady to slightly lower. Still, the oil bulls have momentum after the recent sharp rebound in prices. That’s also a positive for the raw commodity sector, including the metals.

Technically, June gold futures prices closed nearer the session high today. The gold bears still have the overall near-term technical advantage. Prices are still in a four-week-old downtrend on the daily bar chart, but now just barely. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the May low of $1,214.30. First resistance is seen at today’s high of $1,239.10 and then at $1,250.00. First support is seen at today’s low of $1,230.00 and then at 1,225.00. Wyckoff's Market Rating: 4.0

July silver futures prices closed near the session high and saw more short covering and bargain hunting. The silver market bears still have the overall near-term technical advantage. However, it appears that a market bottom is in place. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.859. First resistance is seen at this week’s high of $16.815 and then at $17.00. Next support is seen at today’s low of $16.61 and then at this week’s low of $16.41. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed up 120 points at 255.10 cents today. Prices closed near the session high today on short covering. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 246.25 cents. First resistance is seen at this week’s high of 255.70 cents and then at 258.00 cents. First support is seen at this week’s low of 251.80 cents and then at 250.00 cents. Wyckoff's Market Rating: 4.0.