Gold prices suffered strong double-digit losses and hit a three-week low today, while the silver market was hammered to a three-month low. The precious metals bulls are fading fast late this week amid a resurgent U.S. dollar index that is pushing toward its recent multi-month high. April gold futures were last down $19.20 an ounce at $1,291.20. May Comex silver was last down $0.308 at $14.99 an ounce.
Gold and silver bulls have company, as much of the raw commodity sector was punished today by the stronger greenback.
The U.S. economic data point of the day was the third and final reading on fourth-quarter gross domestic product. GDP came in at up 2.2%, which was right in line with the consensus forecast and compares to the last 4Q estimate of up 2.6%. At the same time the U.S. jobless claims report came in and showed a drop in the latest week. The U.S. dollar index began its rally today right after those U.S. data releases.
Asian and European stock indexes were mostly firmer overnight. U.S. stock indexes are mixed at midday. A bit more risk appetite in the marketplace today was also a negative for the safe-haven metals.
The U.S. and China are holding high-level trade talks that are taking place in Beijing. The key figures were meeting for dinner Thursday evening. There is no clear consensus on the eventual outcome of the U.S.-China trade talks, which means the final result could cause volatility in markets.
The other key outside market today sees Nymex crude oil prices also lower and trading around $59.00 a barrel.
Technically, April gold futures prices closed nearer the session low and hit a three-week low today. The bulls still have the overall near-term technical advantage but are fading fast and need to show fresh power soon.
A three-week-old uptrend on the daily bar chart was soundly negated today. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,324.50.
Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,280.80. First resistance is seen at $1,300.00 and then at today’s high of $1,311.10. First support is seen at today’s low of $1,290.10 and then at $1,285.00. Wyckoff’s Market Rating: 6.0
May silver futures prices closed nearer the session low and hit a three-month low today. The silver bulls have lost the overall near-term technical advantage. A three-week-old uptrend on the daily bar chart was soundly negated today.
Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $15.65 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 $15.15 and then at $15.25. Next support is seen at today’s low of $14.955 and then at $14.75. Wyckoff’s Market Rating: 5.0.
May N.Y. copper closed up 80 points at 287.10 cents today. Prices closed near mid-range today. Recent selling pressure still suggests this market has topped out. The copper bulls do still have the overall near-term technical advantage.
Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the February high of 297.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents.
First resistance is seen at today’s high of 288.80 cents and then at 290.00 cents. First support is seen at today’s low of 285.30 cents and then at this week’s low of 283.45 cents. Wyckoff’s Market Rating: 6.0.