Gold Ends Day Higher Despite Sharp Midday Drop

Kitco News -- Gold (GLD) - Get Report was volatile on Monday and saw a sharp drop in midday trading, however, Jim Wyckoff, Kitco Metal's senior technical analyst says that the metal continues to show resilience. 'Gold prices ended the U.S. day session slightly higher Monday but well off the highs seen earlier in the day. A rally in the U.S. stock market Monday worked to temper buying interest in the safe-haven metal. Still, gold continues to show the resilience required to extend the present near-term price uptrend,' he said on Monday. June Comex gold futures were last up $1.00 an ounce at $1,273.90. July Comex silver was last up $0.023 at $17.155 an ounce. 'The key outside markets were bullish for the precious metals markets Monday, as the U.S. dollar index was slightly lower and Nymex crude oil prices were solidly higher and hit a six-month high,' Wyckoff added. However, he noted, these outside markets also worked to rally U.S. stocks, which in turn helped to mitigate buying interest in gold. Wyckoff said that the gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the May of $1,306.00.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.