Gold price modestly up, silver sharply higher amid bullish charts
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(Kitco News) - Gold prices are slightly up and silver prices are sharply higher and hit a two-month high in early U.S. trading Thursday. Bullish technical charts are fueling speculative buying interest in the two precious metals. However, gold is being constrained a bit by an up-tick in trader/investor risk appetite this week. April gold was last up $2.10 at $1,969.00 and May silver was up $0.459 at $23.93.
Global stock markets were mixed to higher overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. Stock market bulls around the globe are regaining confidence. The marketplace is slowly moving beyond the U.S. and European banking troubles. However, it's too soon for the "all clear" siren regarding the matter. And now attention is turning to the health of major insurance companies. Reads a Wall Street Journal headline today: "Threat of a slow-boil bank crisis endures."
The U.S. data point of the week is Friday's personal consumption and expenditures (PCE) data that will provide fresh clues on inflation and whether the U.S. economy is headed toward recession. It's been said the PCE data is a favorite gauge of inflation for the Federal Reserve.
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The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are higher and trading around $73.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.568%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the third estimate of four-quarter gross domestic product, and corporate profits.
Technically, the gold futures bulls still have the firm overall near-term technical advantage. Prices are still in an uptrend on the daily bar chart. A bullish symmetrical triangle pattern has now formed on the daily bar chart. Bulls' next upside price objective is to produce a close in April futures above solid resistance at the March high of $2,014.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at Wednesday's high of $1,976.00 and then at this week's high of $1,984.00. First support is seen at $1,950.00 and then at this week's low of $1,945.00. Wyckoff's Market Rating: 7.5
The silver bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.50. First resistance is seen at $24.00 and then at $24.50. Next support is seen at the overnight low of $23.37 and then at this week's low of $22.96 and then at $22.50. Wyckoff's Market Rating: 7.5.