Gold up as traders buy the early dip; U.S. jobs data looms
(Kitco News) - Gold prices are modestly higher in midday U.S. trading Thursday, as the bulls stepped in to buy the early slight dip in prices. Oil prices pushing well up from their daily lows after trading sharply down early on also supported the metals markets. Now, the marketplace awaits what is arguably the most important U.S. data point of the month on Friday morning. April gold futures were last up $6.60 at $1,940.30 and May Comex silver was last down $0.073 at $25.04 an ounce.
Nymex crude oil prices are still solidly lower at midday and trading around $104.00 a barrel. However, prices overnight did trade sharply down to a low of $100.16. Reports said the Biden administration is mulling releasing up to 1 million barrels a day in the coming months from its strategic petroleum reserve, for a total of 180 million barrels. An OPEC meeting Thursday saw the cartel decide to stick to its strategy of gradually reopening the taps. OPEC agreed to raise its output targets by 432,000 barrels per day from May 1. Energy analysts had widely expected OPEC to rubber-stamp another modest monthly increase despite sustained pressure from top consumers calling for the group to pump more.
Meantime, the U.S. dollar index is higher today. The benchmark U.S. 10-year Treasury note is presently yielding 2.322%. For perspective, the German 10-year bund is yielding 0.597% and the 10-year U.K. gilt is fetching 1.616%.
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Global stocks markets were mixed overnight. The U.S. stock indexes are weaker at midday. The U.S. stock indexes are in near-term price uptrends. Today is the last trading day of the month and of the quarter, which makes it an extra important day from a technical charts perspective.
Traders are now awaiting Friday’s key monthly U.S. employment situation report for March, which is expected to see the key non-farm payrolls number come in at up 490,000, compared to a rise of 678,000 seen in the February report.
Technically, April gold futures bulls have the overall near-term technical advantage. However, prices are in a three-week-old downtrend on the daily bar chart. Bulls' next upside price objective is to produce a close above solid resistance at last week’s high of $1,967.20. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,888.30. First resistance is seen at $1,950.00 and then at $1,967.20. First support is seen at today’s low of $1,919.10 and then at $1,900.00. Wyckoff's Market Rating: 6.0
May silver futures bulls have the slight overall near-term technical advantage. However, prices are in a three-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at last week’s high of $26.16 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at today’s high of $25.285 and then at $25.50. Next support is seen at today’s low of $24.67 and then at $24.55. Wyckoff's Market Rating: 5.5.
May N.Y. copper closed down 50 points at 474.50 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 500.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 446.85 cents. First resistance is seen at this week’s high of 482.80 cents and then at 490.00 cents. First support is seen at 470.00 cents and then at this week’s low of 464.20 cents. Wyckoff's Market Rating: 6.5.