(Kitco News) - Gold prices are firmer near midday U.S. trading Wednesday. Some early, modest profit-taking pressure following strong gains earlier this week gave way to bulls stepping in to buy the dip. Silver prices are higher as the bulls have regained momentum. Safe-haven demand amid elevated geopolitical tensions and amid a sharp drop in the U.S. dollar index this week are still bullish underlying fundamentals for the two precious metals. Gains in gold and silver today are being somewhat limited by the slumping crude oil futures market. April gold was last up $9.30 at $2,930.00. May silver prices were last up $0.649 at $33.03.
Gold market bulls also got some traction this morning following the release of a much-weaker-than-expected ADP national employment report that showed a rise of only 77,000 jobs in February, compared to market expectations for a rise of 148,000. The ADP report fell into the camp of the U.S. monetary policy doves and is a precursor to Friday morning’s important monthly U.S. employment situation report for February from the Labor Department.
U.S. stock indexes are mostly weaker near midday and lost modest early gains. U.S. Commerce Secretary Howard Lutnick suggested Tuesday there could be some wriggle room on the new U.S. trade tariffs. He also today said there will be a U.S. announcement on the matter Wednesday afternoon.
The key outside markets today see the U.S. dollar index solidly lower again and hit a four-month low. Nymex crude oil futures prices are solidly lower and trading around $65.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.23%.
Technically, April gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,974.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $2,844.10. First resistance is seen at this week’s high of $2,939.80 and then at $2,950.00. First support is seen at $2,900.00 and then at Tuesday’s low of $2,892.50. Wyckoff's Market Rating: 8.0.
May silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the February high of $34.56. The next downside price objective for the bears is closing prices below solid support at the February low of $31.365. First resistance is seen at $33.50 and then at $34.00. Next support is seen at the overnight low of $32.395 and then at $32.00. Wyckoff's Market Rating: 5.5
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