Gold prices ended the U.S. day session modestly lower Thursday and gave up early tepid gains. Prices closed at a seven-week low close today. Price action earlier saw some short covering in the futures market and bargain hunters buying the dip in the cash market. However, gold prices started eroding when crude oil prices backed down from their session highs. June Comex gold was last down $3.30 an ounce at $1,220.40. July Comex silver was last up $0.084 at $16.345 an ounce.
Technically, June gold futures prices closed nearer the session low and closed at a seven-week low close 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 a 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 $1,234.60 and then at $1,240.00. First support is seen at this week’s low of $1,217.70 and then at the March low of $1,207.70. Wyckoff’s Market Rating: 5.5
Reference: Kitco
Reference: Reuters, Kitco
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