Gold Gains on Save-Haven Demand, Bullish Outside MarketsBy Jim Wyckoff
Wednesday May 13, 2015 07:12
Gold prices ended the U.S. day session moderately higher Tuesday, boosted on short covering, bargain hunting and even some safe-haven demand. A lower U.S. dollar index and higher crude oil prices on this day worked in favor of the precious metals bulls. June Comex gold was last up $9.10 at $1,192.10 an ounce. July Comex silver was last up $0.231 at $16.545 an ounce.
A feature in the world market place recently, and which has become more pronounced this week, has been many bond markets worldwide selling off sharply, including U.S. Treasuries. European and Japanese bond markets are under selling pressure. The bond market sell-off has spilled over into weakness in world stock markets. The world bond market jitters are providing some increased demand for safe-haven gold. Rising bond yields also hint of price inflation, which is also bullish for hard assets like the metals.
The Euro currency was solidly higher and the U.S. dollar index is lower Tuesday morning, partly on news Greece was able to make a 750 million Euro payment to the International Monetary Fund, which was due today. There was some worry among European traders that Greece would not be able to coming up with the funding. However, Greece and the European Union/IMF are still in hard negotiations on Greece’s debt restructuring.
The London P.M. fix is $1,191.50 versus the previous A.M. fixing of $1,184.45.
Technically, June gold futures prices closed nearer the session high today. Gold bears still have the overall near-term technical advantage but trading has turned choppy. Prices are in a down-trending channel on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,168.40. First resistance is seen at today’s high of $1,196.30 and then at $1,200.00. First support is seen at today’s low of $1,179.70 and then at last week’s low of $1,176.60. Wyckoff’s Market Rating: 3.0
July silver futures prices closed nearer the session high today and scored a bullish “outside day” up on the daily bar chart. Silver bears still have the overall near-term technical advantage but trading has turned choppy. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the May high of $16.765 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the April low of $15.595. First resistance is seen at today’s high of $16.595 and then at $16.765. Next support is seen at today’s low of $16.12 and then at $16.00. Wyckoff's Market Rating: 3.0.
May N.Y. copper closed up 295 points at 294.70 cents today. Prices closed nearer the session high and hit a 5.5-month high today. The key “outside markets” were bullish for copper today as the U.S. dollar index was lower and crude oil prices were higher. Copper bulls today gained more technical power and have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 300.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 272.20 cents. First resistance is seen at today’s high of 295.90 cents and then at 300.00 cents. First support is seen at today’s low of 291.75 cents and then at last week’s low of 289.50 cents. Wyckoff's Market Rating: 6.0.