Gold, silver up as the bulls stabilize markets
(Kitco News) - Gold and silver prices are moderately up in midday U.S. futures trading Thursday. The safe-haven metals bulls have late this week stabilized their markets, despite rallies in global stock markets this week, led by the U.S. stock indexes that are at record highs again. Gold and silver bulls should be very encouraged by their metals’ resilience late this week—especially as the U.S. dollar index has also posted a solid rally this week. April gold futures were last up $6.60 an ounce at 1,569.50. March Comex silver prices were last up $0.223 at $17.825 an ounce.
Asian and European shares were also higher overnight as traders and investors at least for now have pushed aside the coronavirus outbreak in China. However, history proves traders and markets are fickle. The coronavirus outbreak continues to spread, with over 500 reported dead in China and around 30,000 afflicted in the country. China’s domestic commerce is being impacted, as is global commerce. The big drop in Tesla’s stock price Wednesday is blamed at least in part on the coronavirus outbreak impacting Tesla’s business in China. Many global companies doing business with China (Remember that China is the world’s second-largest economy.) have been negatively impacted. It will not be surprising to this longtime market watcher to see the coronavirus outbreak back on the front burner of the marketplace next week, or sooner. Such a scenario would be bullish for gold, U.S. Treasuries and the U.S. dollar, and bearish for global equities.
The key outside markets today see crude oil prices slightly higher and trading around $50.85 a barrel. Meantime, the U.S. dollar index is higher and hit a nearly four-month high today.
Traders are awaiting the U.S. employment situation report from the Labor Department that is out Friday morning. The key non-farm payrolls figure is forecast to come in at up around 160,000. However, a strong ADP national employment report reading on Wednesday has some thinking Friday’s jobs report will be stronger than forecast.
Technically, April gold futures prices closed nearer the session high today. The bulls have the overall near-term technical advantage. However, the need to show more power to restart a three-month-old price uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,598.50. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,542.80. First resistance is seen at today’s high of $1,571.90 and then at $1,575.00. First support is seen at today’s low of $1,556.00 and then at this week’s low of 1,561.10. Wyckoff's Market Rating: 6.0
March silver futures prices closed nearer the session high today. The silver bulls and bears are on a level overall near-term technical playing field amid choppy trading conditions. A fledgling downtrend line is still in place on the daily bar chart. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $18.375 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $18.00 and then at this week’s high of $18.125. Next support is seen at this week’s low of $17.465 and then at the January low of $17.28. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed up 200 points at 259.45 cents today. Prices closed near mid-range on more short covering after hitting a more-than-four-year low Monday. The copper bears still have the overall near-term technical advantage but a price downtrend on the daily chart has been negated. More gains Friday would suggest a market bottom is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 274.00 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 248.75 cents. First resistance is seen at today’s high of 262.25 cents and then at 265.00 cents. First support is seen at today’s low of 257.65 cents and then at 254.25 cents. Wyckoff's Market Rating: 2.5.