(Kitco News) - Gold and silver prices are higher near midday Wednesday, with silver once again leading the way with solid gains and scoring a three-week high. The near-term technical postures for both precious metals have become more bullish recently, which is inviting the chart-based traders to the long sides again. Safe-haven demand is also featured in gold and silver, amid a still-uncertain geopolitical environment. April gold was last up $37.40 at $5,214.50. March silver prices were up $2.954 at $90.43.
Somewhat limited the upside in gold today is news that Federal Reserve Bank of Boston President Susan Collins on Tuesday said U.S. interest rates are likely to stay unchanged “for some time” as recent economic data shows an improvement in the labor market, while risks to inflation remain. Those comments fall into the camp of the U.S. monetary policy hawks.
The key outside markets today see the U.S. dollar index a bit weaker, with crude oil prices slightly down and trading around $65.38 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.05 percent.
Note: The gold market operates through two primary pricing mechanisms. The first is the spot market, which quotes prices for on-the-spot purchase and immediate delivery. The second is the futures market, which sets prices for delivery at a future date. Due to year-end positioning market liquidity, the December gold futures contract is currently the most actively traded on the CME.
April gold futures bulls’ next upside price objective is to produce a close above solid resistance at $5,400.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $4,854.20. First resistance is seen at this week’s high of $5,269.40 and then at $5,300.00. First support is seen at this week’s low of $5,109.50 and then at $5,100.00. Wyckoff's Market Rating: 7.0.
March silver futures bulls’ next upside price objective is closing prices above solid technical resistance at $100.00. The next downside price objective for the bears is closing prices below solid support at the February low of $71.815. First resistance is seen at the overnight high of $91.18 and then at $92.50. Next support is seen at the overnight low of $86.505 and then at this week’s low of $84.56. Wyckoff's Market Rating: 6.5
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