Gold Gains As Greenback Sees More Depreciation

(Kitco News) - Goldpriceswere ending the U.S. day session modestly up Tuesday. A weakening U.S.dollar index early this week is propping up the precious metals markets. Therewas also some mild safe-haven demand featured today, as the U.S. stock market islower, but so far in an orderly fashion. April Comex gold futures were last up$4.70 an ounce at $1,331.00. March Comex silver was last down $0.02 at $16.55an ounce.

Worldstock markets were mixed but mostly lower Tuesday. Worries about rising worldinflation are keeping stock market traders and investors edgy. They also stillworry about high daily volatility returning to the stock markets. My bias isthat the high volatility in the stock market has not just disappeared. I alsobelieve the long bull market in stocks has ended-based on the very serioustechnical damage inflicted on the U.S. stock index charts recently.

Thekey “outside markets” on Tuesday saw the U.S. dollar index lower as the bearshave regained downside momentum early this week. Meantime, Nymex crude oil prices were near steady. The International Energy Agency on Tuesday warned thebig increase in U.S. shale oil production will weigh down oil prices this yearand glut the world oil market. The crude oil market appears to have “rolledover” on the daily chart, to suggest a near-term market top is in place.

Thebig U.S. economic report of the week will be Wednesday’s consumer price indexreport. CPI for January is forecast to come in at up 0.4% from December and up1.9% year-on-year. Today, the U.K. reported annual consumer inflation inJanuary at up 3.0%, which was hotter than expected.

Technically,April gold futures prices closed the day session nearer the session high. Thegold bulls have the slight overall near-term technical advantage, but need toshow more power soon to keep it. A three-week-old downtrend is in place on thedaily bar chart. Gold bulls' next upside near-term price breakout objective isto produce a close above solid technical resistance at $1,350.00. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at $1,300.00. First resistance is seen at today’s high of$1,333.50 and then at $1,340.00. First support is seen at today’s low of$1,323.70 and then at this week’s low of $1,316.30. Wyckoff's Market Rating:5.5

Marchsilver futures prices closed near mid-range today. The silver bears still have theoverall near-term technical advantage. Silver bulls' next upside price breakoutobjective is closing prices above solid technical resistance at $17.00 anounce. The next downside price breakout objective for the bears is closingprices below solid support at $16.00. First resistance is seen at today’s highof $16.645 and then at $16.75. Next support is seen at today’s low of $16.41and then at this week’s low of $16.28. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed up 760 points at 316.25 cents today. Prices closed near thesession high on short covering and bargain hunting. The copper bulls have theoverall near-term technical advantage and gained more power today. Copperbulls' next upside price objective is pushing and closing prices above solidtechnical resistance at last week’s high of 325.75 cents. The next downsideprice objective for the bears is closing prices below solid technical supportat 300.00 cents. First resistance is seen at 317.50 cents and then at 320.00cents. First support is seen at 315.00 cents and then at 312.50 cents.Wyckoff's Market Rating: 6.5.

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.

Gold stocks propelled by gain in metal and equities

Big Gold producers report strong Q1/24 results

Gold stocks decline as metal drop offsets equity risk on

Canadian mining equity capital raising robust in 2023, early 2024

Gold stocks gain even as metal price pulls back