(Kitco News) - Gold and silver prices are firmer near midday in U.S. trading Thursday. Gold futures prices hit a record high of $2,172.20 an ounce today, while silver prices hit a nine-week high. The precious metals are being boosted by Federal Reserve Chairman Jerome Powell leaning dovish on U.S. monetary policy while speaking to the U.S. Congress this week. Technical buying from the speculators is also featured this week as the near-term chart postures for gold and silver have become significantly more bullish recently. April gold was last up $4.90 at $2,163.40. May silver was last up $0.132 at $24.625.
The marketplace has digested Powell’s comments to the House committee Wednesday, where he said it is likely the Fed will cut interest rates this year, as inflation has notably receded. The U.S. stock market rallied on Powells comments, while the U.S. dollar index sold off and Treasury yields dipped. Powell is testifying before a Senate panel today.
U.S. stock index futures are higher near midday and at or near record highs.
In overnight news, China economic data saw the world’s second-largest economy’s imports in January and February up 3.5%, year-on-year, while its exports were up 7.1% in the same period. Those numbers were better than market expectations. This is also bullish for the metals markets, suggest better demand from China, which is a voracious consumer of raw commodities.
Traders are awaiting what is arguably the U.S. data point of the month that is out Friday morning: the February employment situation report from the Labor Department. The key non-farm jobs number is seen coming in at up 198,000 versus the rise of 353,000 seen in the January report.
The key outside markets today see the U.S. dollar index solidly lower, on follow-through selling from Wednesday’s losses. That’s also a daily bullish element for the metals. Nymex crude oil prices are slightly down and trading around $78.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching 4.119%.
U.S. President Biden delivers his State of the Union speech Thursday night.
Technically, gold futures bulls have the strong overall near-term technical advantage. A steep three-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,250.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,100.00. First resistance is seen at today’s contract high of $2,172.20 and then at $2,200.00. First support is seen at today’s low of $2,151.70 and then at Wednesday’s low of $2,131.90. Wyckoff's Market Rating: 9.0.
May silver futures prices hit a nine-week high today. The silver bulls have the overall near-term technical advantage and have momentum. Silver bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at this week’s low of $23.23. First resistance is seen at today’s high of $24.735 and then at $25.00. Next support is seen at today’s low of $24.225 and then at $24.00. Wyckoff's Market Rating: 6.5.
May N.Y. copper closed up 485 points at 392.35 cents today. Prices closed nearer the session high and hit a five-week high today. The copper bulls have the firm overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the December high of 388.80 cents. The next downside price objective for the bears is closing prices below solid technical support at the February low of 367.95 cents. First resistance is seen at today’s high of 394.20 cents and then at the January high of 396.75 cents. First support is seen at today’s low of 386.95 cents and then at this week’s low of 383.70 cents. Wyckoff's Market Rating: 7.0.
Hey!! Try out my “Markets Front Burner” weekly email report. Front Burner is my best writing and analysis, I think, because I get to look ahead at the marketplace and do some market price forecasting. Plus, I’ll throw in an educational feature to move you up the ladder of trading/investing success. And it’s free! Email me at jim@jimwyckoff.com and I’ll add your email address to the Front Burner list.
