Gold Up, Silver Hits 2.5-Mo. High, On Chart-Based Buying
(Kitco News) - Gold and silver prices were higher in early-afternoon U.S. trading Wednesday. Silver prices hit a 2.5-month high and are trading well above $17.00. The chart postures for both metals are tilted more in favor of the bulls this week, which is inspiring technically based buying interest. June Comex gold futures were last up $4.40 an ounce at $1,353.90. May Comex silver was last up $0.438 at $17.23 an ounce.
A solid rally in the crude oil market today that saw Nymex futures push to a 3.5-year high above $68.00 a barrel also helped out the precious metals bulls today. Crude oil is the leader of the raw commodity sector, and its “rising tide” is lifting many of raw commodity sector boats.
World stock markets were mostly higher again today. U.S. stock indexes were also higher. Strong first-quarter corporate earnings reports are driving the bulls this week, while geopolitics has taken a back seat, for now. Risk appetite is keen so far this week.
The ability of gold and silver to post price gains today, amid little risk aversion in the marketplace, is impressive.
Technically, the gold bulls have the firm overall near-term technical advantage as prices are not that far below the recent highs. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the April low of $1,322.60. First resistance is seen at today’s high of $1,359.00 and then at $1,362.60. First support is seen at today’s low of $1,345.00 and then at $1,340.00. Wyckoff's Market Rating: 6.5
The silver bulls have regained the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the January high of $17.785 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at $17.50 and then at $17.785. Next support is seen at $17.00 and then at today’s low of $16.73. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed up 745 points at 316.45 cents today. Prices closed nearer the session high and hit a four-week high today. The copper bulls have regained the overall near-term technical advantage. A four-week-old uptrend is in place on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 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 317.85 cents and then at 320.00 cents. First support is seen at 312.00 cents and then at 310.00 cents. Wyckoff's Market Rating: 6.0.