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Gold up, at 5-week high, as market bottom likely in place

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(Kitco News) - Gold prices are solidly up and hit a five-week high in midday U.S. trading Thursday. The yellow metal’s near-term technical posture has markedly improved recently, which is inviting the shorter-term futures traders to play the long side of the market and is also suggesting a near-term market low is in place. A fading U.S. dollar index this week is also favoring the precious metals market bulls. June gold futures were last up $16.50 at $1,757.90 and May Comex silver hit a two-week high today and was last up $0.313 at $25.56 an ounce.

Global stock markets were mostly firmer overnight. U.S. stock indexes are mixed at midday. The Dow and S&P 500 indexes have hit record highs this week. Traders and investors continue to exhibit a little risk aversion and that is boosting the equity markets but continues to constrain safe-haven gold and silver.

The Wednesday afternoon release of the minutes of the last Federal Reserve Open Market Committee (FOMC) meeting that took place in March showed no surprises and the takeaway was that the Fed will keep its monetary policy very accommodative for some time to come. Federal Reserve Chairman Jerome Powell was speaking Thursday at midday at an International Monetary Fund event. In a CNBC interview Thursday, noted Wharton professor Jeremey Siegel said that Powell is the most dovish Fed chair ever.

There was civil unrest and rioting in Northern Ireland Thursday, which the marketplace will continue to monitor. Many believe the situation could get worse as the U.K. tries to figure out what to do with the rules of the region, post-Brexit.

The key outside markets today see the U.S. dollar index lower as the greenback bulls are fading this week. Nymex crude oil prices are slightly lower and trading around $59.65 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.646%.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold futures bears still have the overall near-term technical advantage. However, bulls have gained momentum recently as a price downtrend has been negated along with a bullish double-bottom reversal pattern on the daily bar chart forming, to strongly suggest a market bottom is in place. Bulls’ next upside price objective is to produce a close above solid resistance at $1,800.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,700.00. First resistance is seen at $1,774.00 and then at $1,800.00. First support is seen at today’s low of $1,733.60 and then at this week’s low of $1,721.60. Wyckoff's Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bears still have the overall near-term technical advantage. Prices are still in a nine-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.74 an ounce. The next downside price objective for the bears is closing prices below solid support at the March low of $23.74. First resistance is seen at $25.75 and then at $26.00. Next support is seen at $25.00 and then at this week’s low of $24.66. Wyckoff's Market Rating: 4.0.

May N.Y. copper closed up 395 points at 409.40 cents today. Prices closed nearer the session high today. The copper bulls have the firm 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 437.55 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 384.90 cents. First resistance is seen at Wednesday’s high of 411.80 cents and then at this week’s high of 416.00 cents. First support is seen at this week’s low of 402.40 cents and then at 400.00 cents. Wyckoff's Market Rating: 7.0.

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.