The prospects of higher U.S. interest rates undermined the attraction of gold XAU=, which fell to a seven-week low of $1,217.90 per ounce and last stood at $1,222.40.
Gold prices ended the U.S. day session moderately lower and scored a seven-week low Wednesday. Follow-through technical selling pressure was featured as the near-term chart postures for both gold and silver markets have significantly deteriorated this week. The precious metals bulls are wondering if their markets can once again show the resilience that had been seen in recent weeks, to stop the bleeding. Gold bulls need to step up and show power soon. The recent rally in the U.S. dollar index remains a bearish outside market force for the precious metals markets. June Comex gold futures were last down $5.20 an ounce at $1,224.10. July Comex silver was last up $0.056 at $16.315 an ounce.
Technically, June gold futures prices closed near mid-range today. The gold still bulls have the slight overall near-term technical advantage but have faded badly and need to show fresh power soon. Prices are in an accelerating three-week-old downtrend on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at today’s high of $1,230.20 and then at $1,240.00. First support is seen at today’s low of $1,217.70 and then at the March low of $1,207.70. Wyckoff’s Market Rating: 5.5
Reference: Reuters, Kitco
Thai
Eng