P.M. Kitco Metals Roundup: Gold, Silver End Higher; Bulls Gaining Technical Momentum

By Jim Wyckoff
1 April 2010, 2:55 p.m.

June Comex gold futures closed up $11.60 at $1,126.10 Thursday. Prices closed nearer the session high and hit another fresh two-week high. Fresh fund buying to start the new month and new quarter was featured Thursday. A lower U.S. dollar index and higher crude oil prices again supported buying interest in the precious metals Thursday. Gold also continues to see good physical demand, especially from China.

U.S. and many European markets are closed on Friday for the Good Friday holiday. Still, precious metals traders are awaiting Friday's U.S. jobs data. The jobs report was expected to show decent gains in U.S. non-farm payrolls in the latest month, which would be the first time non-farm payrolls showed an increase in well over a year. However, Wednesday's ADP jobs data showed a decline of 23,000 in U.S. non-farm payrolls. Most traders won't get to trade the jobs data until late Sunday or Monday, due to the Friday holiday. Look for the precious metals to continue to take their cues from movements in the currency markets--especially the U.S. dollar and the Euro currency.

The London P.M. gold fix was $1,123.50 an ounce, versus $1,115.50 for the previous P.M. fixing.

Technically, June Comex gold futures bulls this week have gained good upside near-term momentum. Bulls have the near-term technical advantage. Bulls' next upside technical objective is to produce a close above solid technical resistance at the last "reaction high" on the daily chart, at $1,135.00. Bears' next downside price objective is closing prices below solid technical support at $1,100.00. First resistance is seen at Thursday's high of $1,129.10 and then at $1,135.00. Support is seen at $1,1200.00 and then at Thursday's low of $1,112.30. Wyckoff's Market Rating: 6.0.

May silver futures closed up 36.4 cents at $17.89 an ounce Thursday. Prices closed nearer the session high and hit a fresh 2.5-month high. The key "outside markets" were in a bullish posture for silver Thursday, as the U.S. dollar index was lower, while crude oil and U.S. stock index futures prices were higher. Silver bulls have the near-term technical advantage, and have gained fresh upside near-term technical momentum this week. The next downside price objective for the bears is closing prices below solid technical support at $17.00. Bulls' next upside price objective is closing prices above solid technical resistance at the January high of $18.90 an ounce. First resistance is seen at Thursday's high of $18.00 and then at $18.25. Next support is seen at $17.665 and then at $17.50. Wyckoff's Market Rating: 7.0.

May N.Y. copper closed up 305 points at 358.40 cents Thursday. Prices closed nearer the session high and hit a fresh 20-month high. The key "outside markets" were in a bullish posture for copper Thursday, as the U.S. dollar index was lower, while crude oil and U.S. stock index futures prices were higher. The copper market bulls have the solid overall near-term technical advantage. There are no early technical clues of a market top being close at hand. The next downside price objective for the bears is closing prices below solid technical support at 340.00 cents. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the contract high of 375.45 cents. First resistance is seen at Thursday's high of 360.60 cents and then at 362.50 cents. First support is seen at 355.00 cents and then at Thursday's low of 353.60 cents. Wyckoff's Market Rating: 8.5.

By Jim Wyckoff, contributing to Kitco News; jim@jimwyckoff.com