Gold Prices See Tepid Recovery From Tuesday's Losses

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(Kitco News) - Gold prices wereending the U.S. day session steady to slightly higher Wednesday, on a minorupside correction following the solid losses suffered on Tuesday. Buyinginterest in the metals was limited again today as the U.S. dollar index hit afive-week high. April Comex gold futures were last up $0.80 an ounce at $1,319.30.May Comex silver was last up $0.016 at $16.45 an ounce.

Whilethe market place has pretty much digested new Fed Chairman Jerome Powell'stestimony to U.S. lawmakers Tuesday, in which he sounded a more hawkish tone onU.S. monetary policy, some are now thinking Powell's testimony to the U.S. Senateon Thursday could find him clarifying his sentiment put forth Tuesday. OnTuesday Powell intimated there could be four small U.S. rate hikes this year,beginning in March. His comments pressured the metals markets, U.S. Treasuriesand the stock market, while supporting the U.S. dollar index.

Theother key outside market on Wednesday saw Nymex crude oil prices weaker andtrading around $62.50 a barrel. Growing U.S. oil production the past few monthsis a major factor that is likely to cap oil price advances.

TechnicallyAprilgold futures bulls have the slight overall near-term technical advantagebut have faded recently to suggest a near-term market top is in place. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at $1,350.00. Bears' next near-term downsideprice breakout objective is pushing prices below solid technical support at$1,300.00. First resistance is seen at $1,325.00 and then at $1,330.00. Firstsupport is seen at this week's low of $1,314.40 and then at the February low of$1,309.00. Wyckoff's Market Rating: 5.5

Maysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at the February high of $17.04 an ounce. The next downsideprice breakout objective for the bears is closing prices below solid support at$16.00. First resistance is seen at today's high of $16.52 and then atTuesday's high of $16.72. Next support is seen at this week's low of $16.34 andthen at the February low of $16.21. Wyckoff's Market Rating: 4.0.

MayN.Y. copper closed down 535 points at 313.30 cents today. Prices closed nearthe session low and hit a two-week low today. The copper bulls still have theoverall near-term technical advantage, but are fading this week. Copper bulls'next upside price objective is pushing and closing prices above solid technicalresistance at the February high of 329.05 cents. The next downside price objectivefor the bears is closing prices below solid technical support at the Februarylow of 304.65 cents. First resistance is seen at 315.00 cents and then attoday's high of 318.60 cents. First support is seen at today's low of 312.95cents and then at 310.00 cents. Wyckoff's Market Rating: 6.0.

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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