P.M. Kitco Metals Roundup: Gold Hits 2.5-Month High on Fresh Spec Buying, Bullish Technicals

By Jim Wyckoff
7 April 2010, 3:16 p.m.

Comex gold futures pushed to a fresh 2.5-month high Wednesday on fresh speculative buying interest and building upside technical momentum. Ongoing investor demand for physical gold is also underpinning this latest rally. June Comex gold futures closed up $17.00 at $1,153.00. The precious yellow metal was able to score solid gains Wednesday, despite a firmer U.S. dollar index. That is yet another bullish near-term clue for gold.

Gold has also benefited from economic and financial woes in the European Union, which have pressured the European currencies and prompted more buying interest in gold as a hedge against those weakening currencies. There are ongoing concerns regarding Greece's ability to service its debt. Greek bond yields have risen sharply this week. In Euro currency terms, gold prices have hit a record high this week.

The London P.M. gold fixing was $1,142.00, compared to the previous P.M. fixing of $1,132.75.

Technically, June Comex gold prices again closed near the session Wednesday and hit a fresh 2.5-month high. Prices Wednesday also pushed above what was solid technical resistance at the March high of $1,146.60. Bulls have the solid near-term technical advantage and gained more upside momentum Wednesday. Bulls' next upside technical objective is to produce a close above solid technical resistance at the January high of $1,164.10. Bears' next downside price objective is closing prices below solid technical support at $1,120.00. First resistance is seen at Wednesday's high of $1,154.20 and then at $1,164.10. Support is seen at $1,146.60 and then at $1,140.00. Wyckoff's Market Rating: 7.0. (Note: If you'd like a complete explanation of my exclusive Wyckoff's Market Rating system, just send me an email at jim@jimwyckoff.com and I'll attach it and email it back to you.)

May silver futures closed up 26.8 cents at $18.199 an ounce Wednesday. Prices closed near the session high and hit another fresh 2.5-month high. Silver bulls have the solid near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $17.50. 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 Wednesday's high of $18.26 and then at $18.50. Next support is seen at $18.00 and then at this week's low of $17.81. Wyckoff's Market Rating: 7.5.

May N.Y. copper closed down 195 points at 359.75 cents Wednesday. Prices closed near mid-range on more mild profit-taking pressure. The copper market bulls still 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 345.00 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 this week's high of 363.85 cents and then at 365.00 cents. First support is seen at Wednesday's low of 358.60 cents and then at this week's low of 357.55 cents. Wyckoff's Market Rating: 8.0.

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