Gold Prices Gain As U.S. Stock Market Stumbles
(Kitco News) - Gold prices were ending the U.S. day session with moderate gains Thursday. Another big sell off in the U.S. stock market prompted safe-haven demand in both gold and silver markets. Bargain hunters also stepped into both markets after they had dropped to multi-week lows early on today. April Comex gold futures were last up $4.80 an ounce at $1,319.40. March Comex silver was last up $0.092 at $16.33 an ounce.
The U.S. dollar index backed off from its good rally this week, which was also supportive to the precious metals markets. Charts are hinting that the greenback has put in a near-term market bottom.
The other key outside market saw Nymex crude oil prices slumping again today and hitting a five-week low. Technicals are suggesting crude has put in a market top and that’s not bullish for the metals or the rest of the raw commodity sector.
Serious near-term technical damage has been inflicted on the U.S. stock indexes recently, to suggest they have finally topped out for at least the near term. Look for continued higher volatility in equities in the coming days. Many gold and silver market bulls have been frustrated their metals have not seen keener safe-haven demand amid the global stock market sell-offs. Still, if indeed the U.S. stock indexes have put in major tops (which the charts suggest is the case) then gold and silver markets will be at least a long-term beneficiary, if not even starting to appreciate soon. Money flowing out of stocks will be looking for a home, and gold and silver are likely to see their share of new money flows.
Technically, April gold futures prices closed the day session nearer the session high today. The gold bulls have the slight overall near-term technical advantage, but need to show more power soon to keep it. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,300.00. First resistance is seen at $1,325.00 and then at Wednesday’s high of $1,334.80. First support is seen at today’s low of $1,309.00 and then at $1,300.00. Wyckoff's Market Rating: 5.5
March silver futures prices closed nearer the session high today after hitting a six-week low early on. Short covering and bargain hunting were featured. The silver bears still have the firm overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing 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 the December low of $15.635. First resistance is seen at $16.50 and then at Wednesday’s high of $16.73. Next support is seen at today’s low of $16.19 and then at $16.00. Wyckoff's Market Rating: 3.0.
March N.Y. copper closed down 110 points at 308.55 cents today. Prices closed near mid-range and hit another seven-week low today. The copper bulls still have the overall near-term technical advantage but are fading to suggest a market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at this week’s high of 325.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at today’s high of 311.90 cents and then at 315.00 cents. First support is seen at today’s low of 306.15 cents and then at 305.0 cents. Wyckoff's Market Rating: 6.0.