Gold, Hits A 4-Week High On Safe-Haven, Technical Buying
(Kitco News) -Gold and silver prices are higher in midday U.S. trading Monday, with gold notching a four-week high. Some safe-haven buying amid wobbly world stock markets, combined with chart-based buying interest, are lifting the two precious metals markets. April gold futures were last up $9.20 an ounce at $1,321.50. May Comex silver was last up $0.163 at $15.57 an ounce.
Asian and European shares were mostly weaker Monday on heightened concerns regarding slowing global economic growth. U.S. stock indexes were slightly weaker at midday. Following recent major central bank meetings that warned of slowing economic growth prospects, traders and investors have lost some risk appetite, to the benefit of safe-haven gold and silver markets. If world stock markets continue to supper then gold and silver prices will likely continue to trend higher.
The key outside markets today see the U.S. dollar index weaker on a corrective pullback from solid gains late last week. Meantime, Nymex crude oil prices are near steady and trading around $59.00 a barrel.
Technically, April gold futures prices closed near the session high. The bulls have the firm overall near-term technical advantage. A three-week-old uptrend is 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 $1,331.10. 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 $1,331.10. First support is seen at today’s low of $1,310.60 and then at $1,305.00. Wyckoff's Market Rating: 7.0
May silver futures prices closed near the session high and closed at a four-week high close today. The silver bulls have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the March low of $14.985. First resistance is seen at last week’s high of $15.65 and then at $15.75. Next support is seen at today’s low of $15.385 and then at last week’s low of $15.22. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed up 85 points at 285.15 cents today. Prices closed nearer the session high after hitting six-week low early on today. Recent solid selling pressure, including Friday’s bearish weekly low close, suggests this market has topped out. The copper bulls do still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 297.75 cents. The next downside price objective for the bears is closing prices below solid technical support at 275.00 cents. First resistance is seen at 287.45 cents and then at 290.00 cents. First support is seen at today’s low of 283.45 cents and then at 281.00 cents. Wyckoff's Market Rating: 6.0.