Gold Rallies On More Bargain Hunting, Technical Buying, And As U.S. Stocks Sell Off
Thursday February 18, 2016 13:33
(Kitco News) - Gold prices ended the U.S. day session with solid gains Thursday. Some early profit-taking was overcome by bargain hunters buying the dip and by fresh chart-based buying interest—both of which coincided with the U.S. stock indexes coming under selling pressure. April Comex gold was last up $14.10 at $1,225.60 an ounce. March Comex silver was last up $0.048 at $15.42 an ounce.
Most world stock markets were higher Thursday, following the lead of higher crude oil prices that climbed close to $32.00 a barrel. However, U.S. stock indexes started to weaken in late-morning trading and were posting losses in afternoon trading Thursday.
Still, this week has seen a strong rebound in world stock markets, following selling pressure early this year that recently drove most stock indexes into, or close to, bear market territory. There are now technical clues the major U.S. stock indexes have put in market bottoms. Gold and silver bulls should be impressed their metals were able to hold up fairly well this week, in the face of better risk appetite in the marketplace.
Iran reportedly said Thursday it will not cut its crude oil production as part of a plan laid out earlier this week by Saudi Arabia, Russia and other world crude oil exporters. However, other reports said Iran was still listening to its counterparts on the issue. Iraq has also not committed to such a plan. Reports said discussions among OPEC producers and Russia are ongoing. Oil-exporting nations’ economies have been crippled by the plunge in crude oil prices that past year and a half. Nymex crude oil prices were down from the earlier daily high, which in turn put some downside pressure on U.S. stock indexes.
Technically, April gold futures prices closed nearer the session high. Bulls gained fresh upside technical momentum today. Prices are in a two-month-old uptrend on the daily bar chart and bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,191.50. First resistance is seen at today’s high of $1,228.80 and then at this week’s high of $1,236.30. First support is seen at $1,214.40 and then at $1,210.00. Wyckoff’s Market Rating: 6.5
March silver futures prices closed nearer the session high today. The silver market bulls have the overall near-term technical advantage and are also showing resilience this week. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the October high of $16.41 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.64. First resistance is seen at $15.50 and then at this week’s high of $15.74. Next support is seen at this week’s low of $15.155 and then at $15.00. Wyckoff's Market Rating: 6.0.
March N.Y. copper closed steady at 207.55 cents today. Prices closed nearer the session high today. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the February high of 213.80 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the contract low of 193.55 cents. First resistance is seen at this week’s high of 208.50 cents and then at 210.00 cents. First support is seen at 205.00 cents and then at this week’s low of 203.75 cents. Wyckoff's Market Rating: 2.5.