Gold, Silver Stable Despite Uptick In Risk Appetite

(Kitco News) - Gold and silver prices marketshave not strayed far from unchanged price levels so far Tuesday. The bulls areimpressed with the resilience of their safe-haven metals, in the face of keenerrisk appetite in the marketplace the past two days. A weaker U.S. dollar indexso far this week is working in favor of the precious metals bulls. June Comex gold futures were last up $1.10 an ounce at $1,341.30. May Comex silver waslast up $0.006 at $16.535 an ounce.

Worldstock markets were mostly higher overnight. U.S. stock indexes are also pointedtoward higher openings when the New York day session begins. The solid gains inworld stock indexes so far this week are an indication of little risk aversionamong traders and investors.

TheU.S.-China trade tensions have significantly eased early this week. Trumpadministration officials said on Sunday and Monday that trade sanctions againstChina are not imminent and there is time to work out a solution to the matter.China’s Premiere Xi Jinping said today he wants a more open Chinese economy andpledged to do a better job of protecting intellectual property.

Newsthat the U.S. has sanctioned Russian oligarchs and the metals firm United Co.Rusal has boosted aluminum, copper and palladium prices early this week. Rusalis the world’s second-largest aluminum producer.

Thekey “outside markets” on Tuesday morning see the U.S. dollar index lower. Thegreenback is seeing a corrective pullback so far this week after hitting afive-week high last Friday. Meantime, Nymex crude oil prices are higher andtrading just below $65.00 a barrel. Crude is boosted by the easing ofU.S.-China trade tensions and by the missile strikes against Syria this week.

U.S.economic data due for release Tuesday includes the weekly Johnson Redbook andGoldman Sachs retail sales reports, the NFIB small business index, the producerprice index, and monthly wholesale trade.

Technically,Junegold bulls have the overall near-term technical advantage amid recentchoppy trading. Gold bulls' next upside near-term price breakout objective isto produce a close above solid technical resistance at the March high of $1,362.60.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at the March low of $1,309.30. First resistance is seenat $1,348.00 and then at $1,352.50. First support is seen at today’s low of$1,334.20 and then at this week’s low of $1,320.10. Wyckoff's Market Rating: 6.0

Maysilver futures bears have the slight overall near-term technical advantage amidrecent choppy trading. Silver bulls' next upside price breakout objective isclosing prices above solid technical resistance at $17.00 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at $16.00. First resistance is seen at last week’s high of $16.68 andthen at $16.895. Next support is seen at this week’s low of $16.295 and then atlast week’s low of $16.15. Wyckoff's Market Rating: 4.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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