Gold Up, Hits 3-Wk High; Silver Pushes to 5.5-Mo. High
Tuesday April 12, 2016 13:34
(Kitco News) - Gold prices ended the U.S. day session modestly higher and hit a three-week high Tuesday. Silver prices have popped this week and scored a 5.5-month high today. A depreciating U.S. dollar on the world foreign exchange market remains an overall positive element for the precious metals markets. A rallying crude oil market is also bullish for the precious metals and for the entire raw commodity sector. June Comex gold was last up $1.80 at $1,259.70 an ounce. May Comex silver was last up $0.239 at $16.215 an ounce.
The U.S. dollar index hit another eight-month low overnight, but did rebound to push above unchanged on the day in afternoon trading. That did knock gold prices down from their session highs.
Nymex crude oil prices were solidly higher and trading above $41.00 a barrel. A major oil-producers’ meeting is scheduled for Sunday, at which time participants will discuss limiting their production levels. There were reports today that the two major producers attending the meeting—Russia and Saudi Arabia—have agreed to limit their crude oil production levels.
World stock markets were mixed Tuesday, with no major economic or political news to guide traders and investors. Focus for the equity market watchers is first-quarter earnings reports that are starting to come out. U.S. stock indexes were solidly higher Tuesday afternoon.
Technically, June gold futures prices closed near mid-range today and hit a three-week high. Gold bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,287.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at today’s high of $1,264.70 and then at $1,273.00. First support is seen at $1,250.00 and then at this week’s low of $1,241.60. Wyckoff’s Market Rating: 7.0
May silver futures prices closed near the session high today and hit a 5.5-month high. The silver market bulls have the overall near-term technical advantage and have momentum on their side. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $16.37 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.20. First resistance is seen at $16.25 and then at $16.37. Next support is seen at $16.00 and then at today’s low of $15.80. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed up 550 points at 214.50 cents today. Prices closed nearer the session high and saw short covering. The copper bears still have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 225.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 205.00 cents. First resistance is seen at today’s high of 215.15 cents and then at 217.50 cents. First support is seen at 210.00 cents and then at last week’s low of 207.05 cents. Wyckoff's Market Rating: 3.0.