Gold, silver see solid gains on safe-haven demand, rally in oil
Gold and silver prices are sharply higher in midday U.S. trading today, as traders and investors have stepped up their safe-haven buying early this week, amid the war in the Middle East that so far shows no sign of letting up. Falling world government bond prices, higher crude oil prices and a weaker U.S. dollar index are also bullish outside-market elements for the two precious metals. June gold was last up $90.00 at $4,647.00. May silver prices were up $3.566 at $74.13.
Today is also the last trading day of the month and of the quarter, which makes it an extra important trading day from a technical analysis perspective.
The key outside markets see Nymex WTI crude oil prices solidly up and trading around $105.00 a barrel. The U.S. dollar index is down today. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.3 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.
Technically, April gold futures bulls’ next upside price objective is to produce a close above solid resistance at $4,750.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the March low of $4,100.00. First resistance is seen at $4,700.00 and then at $4,750.00. First support is seen at $4,500.00 and then at this week’s low of $4,444.70. Wyckoff's Market Rating: 4.5.
May silver futures bulls see their next upside price objective is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is closing prices below solid support at the March low of $61.21. First resistance is seen at $74.80 and then at $75.00. Next support is seen at $70.00 and then at this week’s low of $67.70. Wyckoff's Market Rating: 4.5.
