Comex gold futures ended the U.S. day session with sharp gains Wednesday, boosted by upbeat economic data coming out of China and by bullish “outside market” forces—a lower U.S. dollar index and firmer crude oil prices. June Comex gold last traded up $24.20 at $1,473.00 an ounce. Spot gold was last quoted up $21.50 at $1,474.50. July Comex silver last traded up $0.079 at $23.885 an ounce.
China on Wednesday reported a trade surplus of $18.2 billion in April compared to expectations of a $15.6 billion surplus. Both imports and exports exceeded market expectations. Asian stock markets were supported on the China news. Also, better-than-expected German industrial production data for April was reported, at up 1.2% when a 0.2% decline was expected. The better China and German data gave a boost to the raw commodity sector, including the precious metals.
The London P.M. gold fixing is $1,468.00 versus the previous P.M. fixing of $1,454.00.
Technically, June gold futures prices closed nearer the session high Wednesday as trading has become choppy. The gold bulls continue to show resilience, which is suggestive of a market bottom being in place. However, gold prices are still in a seven-month-old downtrend on the daily bar chart and the bears have the overall technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,500.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,439.70. First resistance is seen at this week’s high of $1,478.40 and then at last week’s high of $1,487.20. First support is seen at $1,460.00 and then at $1,450.00.
July silver futures prices closed near mid-range Wednesday. Silver bears are still in overall technical control. Prices are in a seven-month-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $23.00. First resistance is seen at Wednesday’s high of $24.095 and then at this week’s high of $24.42. Next support is seen at Wednesday’s low of $23.64 and then at this week’s low of $23.40.
May N.Y. copper closed up 635 points at 336.40 cents Wednesday. Prices closed nearer the session high and hit a fresh three-week high. Upbeat Chinese economic data released Wednesday also helped to boost copper prices. Copper bulls have gained upside momentum and are now on a level near-term technical playing field with the bears. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the April high of 345.25 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 320.00 cents. First resistance is seen at Wednesday’s high of 339.00 cents and then at 340.00 cents. First support is seen at 335.00 cents and then at 332.40 cents.
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