Gold Near Steady; Firmer USDX Offsets Stock Mkt Sell-Off

(Kitco News) - Gold and silver markets were ending the U.S. day session near unchanged levels intwo-sided trading Monday. A bit of safe-haven demand was featured as worldequity markets are selling off, led by strong down-moves in the U.S. stockindexes. However, a rally in the U.S. dollar index to start the trading weekworked to mitigate buying interest in the precious metals markets. April Comex gold futures were last down $0.70 an ounce at $1,336.60. March Comex silver waslast down $0.019 at $16.69 an ounce.

Worldstock markets were mostly lower Monday. U.S. stock indexes were posting sharplosses in early-afternoon trading. The U.S. stock indexes saw bearish weeklylow closes last Friday, which are technical clues near-term market tops are inplace. Worries about rising interest rates and inflation worldwide, asevidenced by rising world bond yields, have spooked the global equitiesmarkets.

Lookfor gains in the safe-haven gold and silver markets if the world stock marketsremain under solid pressure this week. Money flows out of paper assets (stocksand bonds) will benefit the hard assets, including precious metals. Steadymoney flows out of the overly inflated world stock markets would continue tosupport the metals, and quite possibly for quite some time to come.

Theother key “outside market” was also bearish for the metals on Monday. Nymex crude oil prices were solidly lower and trading below $64.00 a barrel. Moreselling pressure in the oil market this week would suggest a market top is inplace.

Technically, Aprilgold futures prices closed near mid-range. The gold bulls still have theoverall near-term technical advantage. However, a six-week-old uptrend on thedaily bar chart has stalled out. Also, last Friday’s bearish weekly low closesuggests a near-term market top is in place. Gold bulls' next upside near-termprice breakout objective is to produce a close above solid technical resistanceat the January high of $1,370.50. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at $1,300.00. Firstresistance is seen at today’s high of $1,341.30 and then at $1,350.00. Firstsupport is seen at last week’s low of $1,330.10 and then at $1,325.00.Wyckoff's Market Rating: 6.0

March Comex silver futures prices closed near mid-range today and did hit a five-week lowearly on. The silver bears have gained the overall near-term technicaladvantage. Silver bulls' next upside price breakout objective is closing pricesabove solid technical resistance at the January high of $17.705 an ounce. Thenext downside price breakout objective for the bears is closing prices belowsolid support at $16.00. First resistance is seen at today’s high of $16.865and then at $17.00. Next support is seen at today’s low of $16.51 and then at$16.25. Wyckoff's Market Rating: 4.0.

March N.Y. copper closed up 250 points at 321.35 cents today. Prices closed nearmid-range. The copper bulls have the overall near-term technical advantage.Copper bulls' next upside price objective is pushing and closing prices abovesolid technical resistance at the December high of 332.20 cents. The nextdownside price objective for the bears is closing prices below solid technicalsupport at the January low of 310.80 cents. First resistance is seen at today’shigh of 325.75 cents and then at 328.00 cents. First support is seen at today’slow of 317.05 cents and then at last week’s low of 315.20 cents. Wyckoff'sMarket Rating: 6.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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