(Kitco News) - Gold and silver prices are solidly higher in early U.S. trading Thursday, with gold hitting a three-month high and silver a six-week peak. Gold prices are closing in on new record highs. Safe-haven demand is featured, as well as chart-based buying, in the two precious metals. The marketplace remains nervous regarding the new U.S. presidential administration’s trade and foreign policies—especially any new trade tariffs. April gold was last up $29.80 at $2,823.40. March silver was up $0.692 at $32.08.
Asian and European shares were mixed to firmer overnight. Many China markets remained closed for the new year holiday. The Euro Stoxx 50 and German DAX hit record highs, while the U.K.’s FTSE 100 is within striking distance of a new record high. U.S. stock indexes are set to open mixed to firmer when the New York day session begins.
The Federal Reserve at its FOMC meeting conclusion Wednesday sent a message that it intends to keep U.S. interest rates unchanged for the foreseeable future. The Fed reiterated that “inflation remains somewhat elevated.” However, Fed Chair Powell at his press conference rejected the idea that it was no longer the case that progress had been made on the inflation front. “We did a little language clean-up there” is all, he indicated — “we just chose to shorten that sentence.” Powell declined to comment on how President Trump’s policies may affect the Fed’s policies. Markets showed no major reactions to the FOMC statement or Powell’s presser.
The European Central Bank today lowered its interest rates, by 0.25%, for a fifth straight meeting of hikes after data is showing a stagnating Euro zone economy.
The key outside markets today see the U.S. dollar index slightly lower. Nymex crude oil futures prices are near steady and trading around $72.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.504%.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the advance fourth-quarter GDP estimate, and pending home sales.
Technically, April gold futures bulls have the solid overall near-term technical advantage. Prices are trending up on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,846.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,750.00. First resistance is seen at $2,846.60 and then at $2,850.00. First support is seen at $2,800.00 and then at the overnight low of $2,794.90. Wyckoff's Market Rating: 8.5.
March silver futures bulls have the overall near-term technical advantage and have restarted a price uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the December high of $33.33. The next downside price objective for the bears is closing prices below solid support at $30.00. First resistance is seen at the overnight high of $32.215 and then at $32.50. Next support is seen at the overnight low of $31.56 and then at $31.00. Wyckoff's Market Rating: 6.0.
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