By Jim Wyckoff
April gold futures closed up $4.20 at $1,103.70 Tuesday. Prices closed nearer the session high on short covering following recent selling pressure. The Euro currency moved up from its session low as trading progressed Tuesday, which also encouraged some fresh buying interest in gold. Still, the firmer U.S. dollar index on Tuesday did limit the upside in gold.

There are trader worries the European Union will fail to agree on a debt aid package for Greece when the group meets in Brussels later this week. This has been an underlying bearish fundamental for the Euro currency and for gold. Germany is increasingly at odds with other EU countries, regarding bailing out Greece. Greece's finance minister said Tuesday his country did not need any financial aid, but traders paid little attention to that political rhetoric. Gold traders will continue to very closely monitor any new developments coming from the European Union, regarding Greece.

Technically, some near-term technical damage has been inflicted in gold this week. Prices are now in a fledgling three-week-old downtrend on the daily bar chart. Bulls' next upside technical objective is to produce a close above solid technical resistance at last week's high of $1,133.90, basis May Comex futures. 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 $1,100.00, at Monday's low of $1,092.10 and then at $1,088.50. Wyckoff's Market Rating: 5.0.

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

May silver futures closed up 9.2 cents at $17.027 an ounce Tuesday. Prices closed nearer the session high on short covering from recent selling pressure. Some chart damage has been inflicted in silver recently. Prices are trending lower from the March high. 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 Tuesday's high of $17.15 and then at $17.25. Next support is seen at Tuesday's low of $16.735 and then at Monday's low of $16.62. Wyckoff's Market Rating: 5.0.

May N.Y. copper closed down 15 points at 337.90 cents Tuesday. Prices closed near mid-range. 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 Tuesday's high of 340.95 cents and then at last week's high of 343.60 cents. First support is seen at Tuesday's low of 335.80 cents and then at Monday's low of 331.05 cents. Wyckoff's Market Rating: 7.0.

Courtesy: www.kitco.com

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