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Jim Wyckoff P.M. Kitco Metals Roundup: Comex Gold Ends Higher, at Record High Close; Silver Sets 31-Year High

23 March 2011, 02:19 p.m.
By Jim Wyckoff
Of Kitco News
http://www.kitco.com/

(Kitco News) - Comex gold futures prices ended higher and set a record-high close of $1,438.00 an ounce Wednesday. Meantime, May Comex silver futures set a fresh 31-year high of $37.29. Major world events of late are still underpinning the precious metals markets on safe-haven investment demand, even though the markets, overall, are calmer so far this week. Comex April gold last traded up $9.90 an ounce at $1,437.50. Spot gold last traded up $8.80 at $1,438.00.

While the markets, in general, do have calmer dispositions this week, the recent unsettling world market events have disappeared by any means. This is keeping a bid under precious metals market prices and limiting selling interest among traders and investors. Don't be surprised to see new, unexpected and market-moving twists and turns regarding the Middle East and Japan situations, which will continue to be closely eyed by all traders. Also, the European Union's major sovereign debt problems are an underlying bullish factor for the precious metals. This week, Portugal is in the spotlight as an austerity measure vote may or may not be taking place.

Crude oil prices traded higher Wednesday and  moved above $106.00 a barrel. The inflationary implications of higher crude oil prices are also a positive for the precious metals market bulls. Veteran gold market watchers are also reckoning "the chickens have come home to roost" regarding inflationary pressures after the major central banks of the world had unleashed a flood of currency in the market place the past couple years.

The U.S. dollar index traded higher Wednesday, on short covering in a bear market. The June futures contract hit another new low on Tuesday. U.S. dollar index bears still have the solid overall technical advantage, which continues to be an underlying bullish factor for the precious metals markets.

The London P.M. gold fix was $1,439.50 versus the previous P.M. fixing of $1,426.00.

Technically, April Comex gold futures closed nearer the session high. Prices are also within easy striking distance of the early-March all-time intra-day high. Bulls have the strong near-term and longer-term technical advantage. Bulls' next near-term upside technical objective is to produce a close above solid technical resistance at the all-time intra-day high of $1,445.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,410.00. First resistance is seen at $1,445.70 and then at $1,450.00. First support is seen at $1,430.00 and then at Wednesday's low of $1,425.80. Wyckoff's Market Rating: 8.5.

May silver futures closed up 92.1 cents at $37.19 an ounce Wednesday. Prices closed nearer the session high and hit a fresh 31-year high of $37.29. Bulls have strong upside momentum. A seven-week-old uptrend is in place on the daily bar chart. The silver bulls have the overall near-term and longer-term technical advantage. There are no early clues to suggest a market top is close at hand. The next downside price breakout objective for the bears is closing prices below solid technical support at $35.00. Bulls' next upside price objective is producing a close above psychological resistance at $40.00 an ounce. First resistance is seen at Wednesday’s high of $37.29 and then at $37.50. Next support is seen at $36.745 and then at $36.50. Wyckoff's Market Rating: 9.5.

May N.Y. copper closed up 1,200 points at 443.30 cents Wednesday. Prices closed near the session high and hit a fresh three-week high. Price action today also negated a six-week-old downtrend on the daily bar chart. Bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 450.00 cents. The next downside price breakout objective for the bears is closing prices below strong technical support at this week’s low of 426.65 cents. First resistance is seen at Wednesday's high of 444.00 cents and then at 445.00. First support is seen at 440.00 cents and then at 437.60 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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