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Gold Sees Slight Gains As Greenback Rout Continues

Kitco News

(Kitco News) - Gold Prices were ending the U.S. day session with scant gains Thursday. A continued erosion of the U.S. dollar in the foreign exchange markets worked to support the yellow metal on this day. April Comex gold futures were last up $1.60 an ounce at $1,344.80. March Comex silver was last down $0.136 at $17.11 an ounce.

There was a very heavy dose of U.S. economic data released Thursday. However, the data showed mixed results that had little impact on the marketplace, overall. Traders and investors are looking ahead to Friday morning’s monthly U.S. employment situation report from the Labor Department. This is arguably the most important U.S. data point of the month. The key non-farm payrolls number consensus forecast comes in at up 177,000.

The U.S. stock market has been a bit wobbly this week, despite the major stock indexes hitting new record highs. If the stock market does start to show that serious downside correction that is now way overdue, safe-haven gold and silver markets will see significant benefit. And it’s not a question of “if” the stock market will see a major downside correction, but “when.”

The key “outside markets” on Thursday saw the U.S. dollar index lower and not far above the recent 3.5-year low. Meantime, Nymex crude oil prices were higher and trading above $65.00 a barrel.

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures prices closed the day session near mid-range. The gold bulls still have the overall near-term technical advantage, but need to show more power soon to keep a six-week-old uptrend in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,370.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,320.00. First resistance is seen at today’s high of $1,350.40 and then at this week’s high of $1,356.30. First support is seen at this week’s low of $1,337.50 and then at $1,330.00. Wyckoff's Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures prices closed near the session low today. The silver bulls have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the January low of $16.735. First resistance is seen at today’s high of $17.375 and then at this week’s high of $17.47. Next support is seen at $17.00 and then at $16.735. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed up 145 points at 321.10 cents today. Prices closed nearer the session high. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 332.20 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 310.80 cents. First resistance is seen at this week’s high of 323.55 cents and then at 325.00 cents. First support is seen at 317.70 cents and then at this week’s low of 315.20 cents. Wyckoff's Market Rating: 6.5.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.