Gold Surges to 7-Wk High On Safe-Haven Buying

(Kitco News) - Gold and silver prices were ending the U.S. day session with solid gains Wednesday,on safe-haven demand. Gold hit a seven-week high today and silver notched atwo-month high. There is elevated anxiety in the marketplace at mid-weekregarding U.S. military intentions after Syria used poisonous gas on itscivilians. President Trump tweeted today, warning Russia that U.S. missiles arecoming and that Russia won’t be able to shoot them down. He also said Russiashould not be aligning with an “animal” (Syria’s Assad) that gasses his ownpeople. June Comex gold futures were last up $15.30 an ounce at $1,361.00. May Comex silver was last up $0.209 at $16.805 an ounce.

Goldhit its daily high in late-morning trading when reports surfaced that SaudiArabian air defenses had intercepted a missile over the city of Riyad. Nofurther information was available on this matter as of this writing.

Worldstock markets were mostly lower Wednesday. U.S. stock indexes opened lower buthad rebounded off their lows at midday. Some profit taking from this week’sgood gains was also featured in the stock indexes, along with the nervousnessregarding U.S. military intentions against Syria.

Thekey U.S. economic highlights of the day was the consumer price index. The MarchCPI came in at down 0.1% from February, which was in line with marketexpectations.
Traderswere awaiting the early-afternoon release of the minutes of the last FederalOpen Market Committee (FOMC) meeting that took place in late March.

Thekey “outside markets” on Wednesday morning saw the U.S. dollar index slightlylower and at a two-week low. The greenback is seeing a corrective pullback thisweek after hitting a five-week high last Friday. Meantime, Nymex crude oil prices are solidly higher and hit a more-than-two-year high above $67.00 abarrel. Brent crude oil hit a four-year high above $71.00 a barrel earliertoday. Crude has been boosted this week by the easing of U.S.-China tradetensions, by the missile strikes against Syria earlier this week, and by thethreat of U.S. military action against Syria.

Technically,Junegold futures bulls have the firm overall near-term technical advantage andare having a very good week. Gold bulls' next upside near-term price breakoutobjective is to produce a close above solid technical resistance at the Januaryhigh of $1,375.50. Bears' next near-term downside price breakout objective ispushing prices below solid technical support at the April low of $1,322.60.First resistance is seen at today’s high of $1,369.40 and then at $1,375.50.First support is seen at $1,350.00 and then at today’s low of $1,342.50.Wyckoff's Market Rating: 7.0

Maysilver bulls have gained the slight overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at the March lowof $16.10. First resistance is seen at today’s high of $16.89 and then at$17.00. Next support is seen at today’s low of $16.515 and then at this week’slow of $16.295. Wyckoff's Market Rating: 5.5.

MayN.Y. copper closed down 190 points at 311.75 cents today. Prices closed nearerthe session low on profit taking after hitting a three-week high early ontoday. The copper bulls and bears are on a level overall near-term technicalplaying field. A three-week-old uptrend is in place on the daily bar chart.Copper bulls' next upside price objective is pushing and closing prices abovesolid technical resistance at 325.00 cents. The next downside price objectivefor the bears is closing prices below solid technical support at 300.00 cents.First resistance is seen at today’s high of 314.75 cents and then at 317.50cents. First support is seen at 310.00 cents and then at Tuesday’s low of306.80 cents. Wyckoff's Market Rating: 5.0.

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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