Gold Prices Supported By Bullish Outside Markets
(Kitco News) - Gold prices are modestly up in early U.S. trading Thursday, supported by a weaker U.S. dollar index and by rallying crude oil prices that hit a three-year high overnight. Some chart-based buying is also featured in both gold and silver this week, as the near-term technical postures for both markets are bullish. February Comex gold was last up $3.30 an ounce at $1,322.70. March Comex silver was last down $0.01 at $17.02 an ounce.
World stock markets were mixed overnight, as a rout in world government bond markets stabilized Thursday. The Chinese government reportedly denied reports out Wednesday that it would scale back its purchases of U.S. Treasury securities. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.
In other overnight news, there were reports Chinese Premier Li Keqiang said the Chinese economy grew by 6.9% in 2017.
The key outside markets on Thursday morning see the U.S. dollar index firmer. The greenback bears still have the overall near-term technical advantage.
Meantime, Nymex crude oil prices are higher and hit another three-year high of $64.08 a barrel overnight. 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.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the producer price index, and the monthly Treasury budget statement.
Technically, February gold futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Bulls’ next upside technical objective is pushing and closing prices above chart resistance at $1,350.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,300.00. First support is seen at the overnight low of $1,316.10 and then at $1,312.70. First resistance is seen at this week’s high of $1,328.60 and then at $1,335.00. Wyckoff’s Market Rating: 6.0
March silver bulls have the overall near-term technical advantage. Prices are still in a four-week-old uptrend on the daily bar chart. The next upside price breakout objective is closing futures 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 $17.17 and then at last week’s high of $17.32. Next support is seen at this week’s low of $16.93 and then at $16.75. Wyckoff's Market Rating: 6.0.