Kitco.com: Gold sees routine pause in its major bull run

(Kitco News) – Gold prices are just a bit weaker in midday U.S. trading after hitting another record high overnight at $2,300.00 basis spot, and at $2,324.80 basis June Comex futures. Silver prices are slightly up and hit a two-year high overnight, at $27.455 basis May Comex futures. Safe-haven demand remains the feature late this week as geopolitical tensions in the Middle East have ratcheted up. Fully bullish charts for both metals are also driving speculators to the long sides. June gold was last down $2.30 at $2,312.70. May silver was last up $0.17 at $27.235.

The marketplace is now awaiting the U.S. data point of the week, if not the month, on Friday morning. The March employment situation report from the Labor Department is due out. The key non-farm payrolls number is seen coming in at up 200,000, which compares to a rise of 275,000 in the February report.

The Associated Press reported that the U.S. military is expecting some form of retaliation from Iran after Israel earlier this week killed some top-brass Iranian military officials in an air strike. Iran has said in the past it holds the U.S. responsible for any Israeli attack on Iran, given the very close ties between the U.S. and Israel and much of Israel’s military weapons coming from the U.S.

The stock and bond markets, as was as the precious metals, were somewhat assuaged by Fed Chairman Jerome Powell’s comments on the U.S. economy in a speech at Stanford University Wednesday afternoon. Powell said U.S. interest rate cuts are still likely this year. The marketplace at present has priced in two interest rate cuts this year.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are slightly down after hitting a five-month high Wednesday and are trading around $85.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.35%.

Technically, June gold futures bulls have the strong overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,400.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,250.00. First resistance is seen at today’s contract high of $2,324.80 and then at $2,335.00. First support is seen at $2,300.00 and then at Wednesday’s low of $2,285.70. Wyckoff’s Market Rating: 9.0.

May silver futures bulls have the solid overall near-term technical advantage. An accelerating six-week-old price uptrend is in place on the daily bar chart. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $28.00. The next downside price objective for the bears is closing prices below solid support at $25.00. First resistance is seen at today’s high of $27.455 and then at $28.00. Next support is seen at today’s low of $26.875 and then at $26.50. Wyckoff’s Market Rating: 8.0.

May N.Y. copper closed up 450 points at 423.90 cents today. Prices closed nearer the session high and hit another 14-month high today. The copper bulls have the solid overall near-term technical advantage. Prices are in an accelerating seven-week-old uptrend on the daily bar chart. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 440.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 396.75 cents. First resistance is seen at today’s high of 425.65 cents and then at 430.00 cents. First support is seen at today’s low of 420.80 cents and then at 416.90 cents. Wyckoff’s Market Rating: 8.5.