Gold Up, Near Recent High, On Safe-Haven Demand, Bullish Charts
Friday February 17, 2017 08:18
(Kitco News) - Gold prices are modestly firmer and near the recent for-the-move high in early U.S. trading Friday. The precious metal is supported by a near-term technical posture that remains bullish. Prices are in a two-month-old uptrend on the daily chart. Some ongoing safe-haven demand continues to support the gold market. April Comex gold was last up $3.20 an ounce at $1,244.70. March Comex silver was last down $0.024 at $18.05 an ounce.
World stock markets were mostly weaker Friday, on downside corrections and profit-taking from recent gains. That’s also allowing some more buying interest to come into the safe-haven gold market. Many world stock indexes have had solid bull runs that are now very mature and ripe for at least significant pullbacks.
Reports say money continues to flow into gold-backed exchange traded funds (ETFs).
There were no major news developments overnight, which kept trading in major markets subdued.
Over the past few weeks, there has been a shift in the market place’s major, overall focus and concern: from central banks’ monetary policies and their upcoming plans, to the economic and fiscal policies of the new U.S. presidential administration. Most agree President Trump is more of a wild card for world markets than any other U.S. president in modern history. An unconventional press conference held by Trump Thursday did not assuage concerns among many about Trumps unpredictability. This is bullish for the gold market.
The key “outside markets” on Friday morning find the U.S. dollar index trading higher. The greenback bulls have the overall near-term technical advantage amid recent choppy trading. Meantime, Nymex crude oil futures prices are weaker Friday morning. Oil prices are in a sideways trading range that has bound that market for weeks.
U.S. economic data due for release Friday is light and includes the leading economic indicators report.
(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)
Technically, April gold futures bulls have the overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is closing 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 $1,237.50 and then at $1,225.00. Wyckoff’s Market Rating: 6.0
March silver bulls have the overall near-term technical advantage. Prices are in a seven-week-old uptrend on the daily bar chart and hit a three-month high Thursday. Silver bulls’ next upside price breakout objective is closing futures 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 Thursday’s high of $18.14 and then at $18.25. Next support is seen at this week’s low of $17.73 and then at $17.545. Wyckoff's Market Rating: 6.0.