Thursday April 17, 2014 8:26 AM
(Kitco News) - Gold prices ended the U.S. day session lower and near the daily low Thursday. The bearish technical posture that has gripped the gold market this week is presently trumping potential safe-haven buying on the Russia-Ukraine crisis. June gold was last down $8.40 at $1,295.10 an ounce. Spot gold was last quoted down $7.10 at $1,295.50. May Comex silver last traded down $0.039 at $19.595 an ounce.
The Russia-Ukraine tensions were ratcheted up a notch this week, but the gold market surprisingly sold off. However, it’s still my bias that any further escalation in the crisis will see increased demand for safe-haven assets, including gold. A foreign ministers meeting including officials from the U.S., Russia, Ukraine and the European Union got under way in Geneva, Switzerland Thursday to try to de-escalate the situation. The U.S. is leading an effort to slap further economic and diplomatic sanctions on Russia. As the three-day Easter holiday weekend approaches, it was a bit surprising to this analyst to see a lack of risk aversion in the market place Thursday. The Russia-Ukraine crisis could escalate into an international crisis in a hurry.
U.S. economic data released Thursday included the weekly jobless claims report and the Philadelphia Fed business survey. Neither of those reports did much to move the gold market.
Technically, June gold futures prices closed nearer the session low. Near-term chart damage has been inflicted this week and the bears have the near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,331.40. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the April low of $1,277.40. First resistance is seen at $1,300.00 and then at $1,307.10. First support is seen at Thursday’s low of $1,292.80 and then at this week’s low of $1,284.40. Wyckoff’s Market Rating: 4.0
May silver futures prices closed near mid-range Thursdsay. The bears have the solid overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the April high of $20.40 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $19.00. First resistance is seen at $19.805 and then at $20.00. Next support is seen at $19.325 and then at this week’s low of $19.22. Wyckoff's Market Rating: 2.0.
May N.Y. copper closed up 245 points at 305.00 cents Thursday. Prices closed nearer the session high on short covering. Bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the April high of 308.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at this week’s low of 296.55 cents. First resistance is seen at this week’s high of 306.20 cents and then at 308.00 cents. First support is seen at Thursday’s low of 302.25 cents and then at 300.00 cents. Wyckoff's Market Rating: 4.0.
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