Gold Up On Short Covering, Value Buying
(Kitco News) -Gold prices are firmer in early U.S. trading Thursday, supported by some short covering by the shorter-term futures traders and on perceived bargain hunting in the cash market. Weaker U.S. stock indexes ahead of the day session in New York are also a positive for the gold market. June Comex gold was last up $4.90 an ounce at $1,223.80. July Comex silver was last up $0.133 at $16.34 an ounce.
There were no major news developments overnight to help drive the markets. The Bank of England held its monetary policy steady and the regular BOE meeting Thursday, as expected.
The outside markets on Thursday morning see the U.S. dollar index slightly higher. Crude oil prices are also higher today. Oil prices have made a good rebound this week, after scoring a 12.5-month low last week. This week’s rally in crude suggests the market has put in a near-term bottom. That would be good news for the raw commodity markets, including the precious metals.
U.S. economic data due for release Thursday includes the weekly jobless claims report and the producer price index.
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Technically, June gold futures bears have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,200.00. First resistance is seen at $1,228.70 and then at this week’s high of $1,236.90. First support is seen at this week’s low of $1,214.30 and then at $1,210.00. Wyckoff’s Market Rating: 3.5
July silver bears have the firm overall near-term technical advantage. The next upside price breakout objective is closing futures prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at this week’s high of $16.455 and then at $16.645. Next support is seen at this week’s low of $16.06 and then at $16.00. Wyckoff's Market Rating: 2.5.