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(Kitco News) -Comex February gold futures prices ended the U.S. day session solidly higher Thursday, hit a fresh seven-week high and are saw good follow-through buying strength from Wednesday’s strong gains. The gold and silver market bulls have gained fresh upside near-term technical momentum this week. The key “outside markets were also in a bullish posture for the precious metals markets Thursday, as the U.S. dollar index was weaker and crude oil prices were higher. February gold last traded up $25.60 at $1,725.70 an ounce. Spot gold was last quoted up $15.10 an ounce at $1,726.50.  March Comex silver last traded up $0.499 at $33.62 an ounce.
                         
The precious metals markets continued to feel the bullish effects of Wednesday’s FOMC statement from the U.S. Federal Reserve that suggested the Fed will continue its very accommodative monetary policy for quite some time to come--at least through 2014. The very low interest rate environment suggested by the Fed is bullish for gold and silver as it suggests other competing assets, such as bonds or even stocks, will continue to have low annual returns. It also hints the Fed remains very concerned about the U.S. economy’s health, which is also bullish for safe-haven gold.

The U.S. dollar index was lower again Thursday and hit a fresh six-week low. The dollar index bears have fresh downside near-term technical momentum, and that is also aiding the precious metals bulls.

Crude oil prices were firmer Thursday and are hovering around $100.00 a barrel. That was also a mild positive for the metals Thursday. Crude oil bulls have the overall near-term technical advantage. Crude and the dollar index are the two key “outside markets” that will continue to have a daily influence on gold and silver prices.

There were no major, fresh developments coming out of the European Union debt crisis Thursday, as the Fed’s FOMC meeting results have temporarily overshadowed the EU debt crisis. This week there has been waning optimism that Greek officials and the private sector can agree on a viable plan for their debt restructuring. The market place, including the precious metals sector, will continue to closely monitor the day-to-day machinations coming out of the EU, regarding their sovereign debt and financial crisis. Still, the EU debt crisis is a major underlying bullish factor for the gold market.

The London P.M. gold fixing was $1,727.00 versus the previous P.M. fixing of $1,650.00.

Technically, February gold futures prices closed nearer the session high again Thursday and hit a fresh seven-week high. The bulls produced technically important follow-through buying strength, following big gains Wednesday, to gain even more technical power. Gold bulls have the solid overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at the December high of $1,767.10. Bears' next near-term downside price objective is closing prices below chart support at this week’s low of $1,649.20. First resistance is seen at Thursday’s high of $1,731.50 and then at $1,740.00. First support is seen at $1,713.20 and then at $1,700.00. Wyckoff's Market Rating: 7.5.

March silver futures prices closed nearer the session high Thursday and hit a fresh nine-week high. Silver bulls have the overall near-term technical advantage and have gained fresh upside momentum. A four-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the October high of $35.68 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $31.00. First resistance is seen at Thursday’s high of $33.79 and then at $34.00. Next support is seen at $33.00 and then at $32.50. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 585 points 388.80 cents Thursday. Prices closed nearer the session high and hit another fresh four-month high. The key “outside markets” were bullish for copper Thursday, as crude oil was higher and the U.S. dollar index was lower. Copper bulls have the solid near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Copper bulls' next upside breakout objective is pushing and closing prices above major psychological resistance at 400.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 367.50 cents. First resistance is seen at Thursday’s high of 391.05 cents and then at 392.50 cents. First support is seen at 387.50 cents and then at 385.00 cents. Wyckoff's Market Rating: 7.5.

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By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

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