Gold Lifted By Bullish Outside Market Forces
(Kitco News) - Gold prices ended the U.S. day session moderately higher Thursday. The precious metal was lifted by a lower U.S. dollar index and by higher crude oil prices that hit a three-year high today. Some technical buying is also featured in gold, as the near-term chart posture is getting more bullish. February Comex gold was last up $3.80 an ounce at $1,323.00. March Comex silver was last down $0.06 at $16.97 an ounce.
The rout in world government bond markets stabilized Thursday, which allowed world stock markets to recover or even rally a bit. The Chinese government has denied it is planning to scale back its purchases of U.S. Treasury securities, reports said Thursday.
U.S. stock indexes hit new record highs Thursday, but the competing asset class gold still managed gains, which is impressive to the yellow metal bulls and hints of more upside for gold.
The key outside markets on Thursday saw the U.S. dollar index solidly lower. The greenback bears have the firm0 overall near-term technical advantage.
Meantime, Nymex crude oil prices were higher and hit another three-year high of $64.77. The U.S. government is expected to rule on Friday whether it extends or waives economic sanctions against Iran. The recent rally in oil prices has been a positive development for the raw commodity sector.
Technically, February goldd futures prices closed nearer the session high. The bulls have the overall near-term technical advantage, amid a four-week-old uptrend in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,280.00. First resistance is seen at this week’s high of $1,328.50 and then at $1,335.00. First support is seen at today’s low of $1,316.10 and then at the $1,312.70. Wyckoff's Market Rating: 6.5
March silver futures prices closed near mid-range. The bulls have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Prices are still in a four-week-old uptrend on the daily bar chart, but now just barely. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the October high of $17.59 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.435. First resistance is seen at today’s high of $17.065 and then at $17.22. Next support is seen at today’s low of $16.88 and then at $16.75. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 40 points at 323.15 cents today. Prices closed near mid-range today. The copper bulls have the overall near-term technical advantage amid some recent, normal profit taking. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 335.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 310.00 cents. First resistance is seen at this week’s high of 327.45 cents and then at 330.00 cents. First support is seen at today’s low of 320.65 cents and then at 318.00 cents. Wyckoff's Market Rating: 7.0.