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Gold Higher Amid Bullish Outside Market Forces, Technical Momentum

(Kitco News) - Gold prices were ending the U.S. day session moderately up Thursday, supported by a lower U.S. dollar index and U.S. stock indexes on this day. The technical charts for gold and silver also remain in the bullish camps, as both markets are in near-term price uptrends. April Comex gold was last up $8.50 an ounce at $1,241.50. March Comex silver was last up $0.122 at $18.085 an ounce.

Global equity markets were mostly weaker Thursday, on corrective pullbacks from recent gains that have many stock indexes at or near record or multi-year highs. U.S. stock indexes were also lower in early-afternoon action. The pauses in the world stock market rallies Thursday were a positive element for the competing asset class, safe-haven gold.

A feature in the marketplace this week has been rising world government bond yields, amid upbeat economic data coming from the U.S. and on a perceived more hawkish tone on monetary policy coming from Federal Reserve Chair Janet Yellen in her testimony to the U.S. Congress this week. Bond yields did pull back a bit on Thursday. Still, rising inflationary expectations worldwide are likely to see world government bond yields continue to tick higher in the coming months.

The key “outside markets” on Thursday afternoon find the U.S. dollar index trading lower on a downside correction from recent gains that saw prices hit a three-week high Wednesday. The greenback bulls still have the overall near-term technical advantage. Meantime, Nymex crude oil futures prices are weaker Thursday afternoon. Oil prices are back in a sideways trading range that has bound that market for weeks.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed nearer the session high. The gold bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,210.00. First resistance is seen at the February high of $1,246.60 and then at $1,250.00. First support is seen at today’s low of $1,233.30 and then at $1,225.00. Wyckoff's Market Rating: 6.0

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices closed nearer the session high and hit a three-month high today. The silver market bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at today’s high of $18.14 and then at $18.25. Next support is seen at today’s low of $17.935 and then at this week’s low of $17.73. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed down 230 points at 271.75 cents today. Prices closed nearer the session low. The copper bulls have the firm overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 290.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 260.00 cents. First resistance is seen at today’s high of 276.30 cents and then at this week’s high of 282.30 cents. First support is seen at today’s low of 269.35 and then at 267.50 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@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 precious metal products, 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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