Gold, Silver Near Steady Amid Offsetting Market Forces
(Kitco News) - Gold and silver prices were ending the U.S. day session not far from unchanged levels on the day. Both safe-haven metals saw some early selling pressure in the present environment of not much risk aversion in the marketplace. However, a sell-off in the U.S. dollar index as Thursday’s trading day progressed was a bullish outside market force supporting the precious metals. April Comex goldfutures were last up $0.70 an ounce at $1,332.70. March Comex silver was last up $0.012 at $16.605 an ounce.
The marketplace has digested Wednesday afternoon’s FOMC minutes that said stronger-than-expected U.S. economic growth in recent weeks is keeping the Federal Reserve on pace to keep gradually raising U.S. interest rates. The minutes prompted choppy trading in the stock and currency markets, and pushed U.S. Treasury yields up. The FOMC minutes contained elements that could be deemed as both hawkish and dovish on U.S. monetary policy.
The other key outside market on Thursday saw Nymex crude oil prices higher and trading just below $63.00 a barrel. The higher oil market today was also a bullish element for the metals markets.
Technically, April gold futures prices closed nearer the daily high. No serious chart damage has been inflicted with this week’s downturn. The gold bulls still have the overall near-term technical advantage, but need to show fresh power soon to keep it. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the February low of $1,309.00. First resistance is seen at Wednesday’s high of $1,338.50 and then at $1,350.00. First support is seen at today’s low of $1,322.90 and then at $1,320.00. Wyckoff's Market Rating: 6.0
March silver futures prices closed nearer the session high. The silver bears have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at this week’s high of $16.745 and then at the February high of $16.95. Next support is seen at $16.50 and then at this week’s low of $16.34. Wyckoff's Market Rating: 4.5.
March N.Y. copper closed up 220 points at 323.80 cents today. Prices closed nearer the session high and scored a bullish “outside day” up on the daily bar chart. 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 the December high of 323.65 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 302.60 cents. First resistance is seen at this week’s high of 324.60 cents and then at last week’s high of 327.20 cents. First support is seen 320.00 cents and then at today’s low of 315.35 cents. Wyckoff's Market Rating: 7.0.