EDITOR'S NOTE: Catch the all new Kitco.com Market Data and Bitcoin sections!
P.M. Kitco Roundup: Gold Ends Firmer, Gets Slight Boost From Yellen Remarks
Thursday February 27, 2014 1:48 PM
(Kitco News) - Gold prices ended the U.S. day session with modest gains Thursday, on some more chart-based buying as the near-term technical picture for gold remains bullish. The yellow metal also got a slight lift from remarks by Federal Reserve Chair Janet Yellen to the U.S. Congress. April gold was last up $2.80 at $1,330.90 an ounce. Spot gold was last quoted up $1.00 at $1,331.25. March Comex silver last traded down $0.024 at $21.23 an ounce.
Yellen’s speech to the U.S. Senate Banking Committee Thursday morning was not much different from her remarks to a House of Representatives panel a few weeks ago. However, she did in Thursday's remarks mention some recent weaker U.S. economic data. Such might make the U.S. central bank less aggressive in winding down its quantitative easing program that has been in place for several years, but which just recently has been scaled back. Traders and investors were looking for any clues regarding future monetary policy moves by the Federal Reserve, including the pace of the Fed’s “tapering” of its monthly bond-buying program. Yellen’s speech was originally scheduled for a couple weeks ago, but was postponed due to inclement weather.
The Chinese currency, the yuan, fell to a seven-month low against the U.S. dollar Thursday, as it appears the Chinese government is manipulating its yuan for world trade advantages and to punish currency speculators trading the yuan.
The crisis in Ukraine is still a worry to the market place. The country is on the verge of financial collapse and needs funding soon from outside sources. Also, gunmen took over the government offices in Crimea Thursday and raised a Russian flag. This comes as the Russian government has moved troops and armor closer to Ukraine. If this situation escalates it would put even more risk aversion into the world market place, which would likely be bullish for gold and U.S. Treasuries and bearish for equities.
U.S. economic data released Thursday included the weekly jobless claims report, durable goods orders, and the Kansas City Fed manufacturing survey. Taken together, this latest data again favored the weak side of market expectations.
The London P.M. gold fix is $1,332.25 versus the previous P.M. fixing of $1,331.75.
Technically, April gold futures prices closed near mid-range Thursday. A two-month-old uptrend is in place on the daily bar chart. Bulls have the overall near-term technical advantage. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,360.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,307.10. First resistance is seen at Thursday’s high of $1,336.40 and then at this week’s high of $1,345.60. First support is seen at Thursday’s low of $1,324.00 and then at this week’s low of $1,318.70. Wyckoff’s Market Rating: 6.0
March silver futures prices closed near mid-range after hitting a two-week low early on Thursday. The bulls have faded and need to show fresh power soon. Silver bulls still have the slight overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $22.18 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $20.67. First resistance is seen at Thursday’s high of $21.48 and then at $21.67. Next support is seen at Thursday’s low of $20.985 and then at $20.67. Wyckoff's Market Rating: 5.5.
March N.Y. copper closed down 115 points at 323.30 cents Thursday. Prices closed nearer the session low. Copper bulls are fading. Bears now have the slight near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 329.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of 317.50 cents. First resistance is seen at today’s high of 324.95 cents and then at 327.55 cents. First support is seen at this week’s low of 323.55 cents and then at this week’s low of 322.60 cents. Wyckoff's Market Rating: 4.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
 |
Discuss on Kitco Forums
