P.M. Kitco Metals Roundup: Gold Ends Down, But Up from Daily Low

April gold futures closed down $8.10 at $1,099.50 Monday. Prices closed near mid-range after hitting a fresh four-week low in early trading. A stronger U.S. dollar index in early trading, as well as lower crude oil prices, helped to press gold prices lower. However, as the session progressed the dollar index backed off its highs and crude oil prices moved above unchanged, which did allow gold to move up from its session low.

The debt problems in Greece continue to plague the Euro currency, which in turn has also weighed on the gold market recently. The Euro hit a fresh three week low Monday following remarks from German Chancellor Merkel indicating this week's European Union summit may not produce an aid package for Greece.

The specter of rising interest rates in major world economies has spooked the gold bulls a bit, following last Friday's move by India's central bank to raise interest rates. China could be the next country to further raise its interest rates to ward off inflationary pressure.

The afternoon London gold fix was $1,097.25 versus the previous London P.M. fix of $1,105.50.

Some near-term technical damage has been inflicted in gold futures with Monday's follow-through selling pressure from Friday's solid losses. A six-week-old uptrend on the daily bar chart has been negated. Prices are now in a fledgling three-week-old downtrend on the daily bar chart for April Comex gold. Bulls' next upside technical objective is to produce a close above solid technical resistance at last week's high of $1,133.90. Bears' next downside price objective is closing prices below solid technical support at $1,088.50. First resistance is seen at Monday's high of $1,108.60 and then at $1,120.00. Support is seen at Monday's low of $1,092.10 and then at $1,088.50. Wyckoff's Market Rating: 5.0.

May Comex silver futures closed down 9.7 cents at $16.935 an ounce Monday. Prices closed nearer the session high after hitting a fresh three-week low early on. The key "outside markets" were in a bearish posture for silver early in the session, but then turned into a bullish posture as the session progressed, with crude oil and stock indexes rallying, while the U.S. dollar index dropped below unchanged. Some chart damage has been inflicted in silver recently, as prices posted a bearish weekly low close on Friday and Monday's follow-through selling pressure negated a six-week old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $16.00. Bulls' next upside price objective is closing prices above solid technical resistance at the March high of $17.665 an ounce. First resistance is seen at Monday's high of $17.01 and then at $17.25. Next support is seen at $16.75 and then at Monday's low of $16.62. Wyckoff's Market Rating: 5.0.

May N.Y. copper closed up 80 points at 338.05 cents Monday. Prices closed nearer the session high. The key "outside markets" were in a bullish posture for copper by the end of trading Monday, as crude oil prices were firmer, U.S. stock indexes firmer and the U.S. dollar index was weaker. The copper market bulls have the overall near-term technical advantage. However, prices have been trading in a sideways fashion for three weeks. The next downside price objective for the bears is closing prices below solid technical support at last week's low of 329.00 cents. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the March high of 348.70 cents. First resistance is seen at 340.00 cents and then at last week's high of 343.60 cents. First support is seen at 335.00 cents and then at Monday's low of 331.05 cents. Wyckoff's Market Rating: 7.0.

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