Gold Ends Firmer, at 2-Week High; Weakening U.S. Dollar Bullish for Metals
New York (Mar 23) Gold prices ended the U.S. day session modestly higher and hit a two-week high Monday. Solid losses in the U.S. dollar index on this day worked in favor of the precious metals bulls. The gold and silver market bulls have gained some upside technical momentum to suggest near-term lows are in place. April Comex gold was last up $3.10 at $1,187.80 an ounce. May Comex silver was last up $0.017 at $16.90 an ounce.
The key “outside markets” on Monday found the U.S. dollar index sharply lower and crude oil prices near steady. The U.S. dollar index posted a bearish weekly low close last Friday and saw higher volatility at higher price levels last week—both early technical clues of a topping process in the index. The weaker greenback is a bullish underlying factor for most of the raw commodity sector. Meantime, Nymex crude oil futures continue to hover near the six-year low scored last week. Prices are hovering just above $45.00 a barrel. The strong bear market in crude oil is a negative for the raw commodity sector, including the metals.
One geopolitical matter that may be come closer to the front burner of the market place this week is the ongoing negotiations between Greece and European Union officials, regarding agreement on a new longer-term financing package for Greece. Some reports have said those talks have not gone well. Greece’s new prime minister is visiting Berlin to meet with the German Chancellor early this week.
The London P.M. gold fixing is $1,186.25 versus the previous A.M. fixing of $1,181.40.
Technically, April gold futures prices closed nearer the session high today. The bullish weekly high close last Friday gave the bulls technical momentum and suggests a near-term low is in place. Bears still have the overall near-term technical advantage. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200.00. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week’s low of $1,141.60. First resistance is seen at $1,190.00 and then at $1,200.00. First support is seen at today’s low of $1,178.60 and then at $1,170.00. Wyckoff’s Market Rating: 3.0
May silver futures prices closed nearer the session high and hit a six-week high today. A two-month-old downtrend on the daily bar chart has been negated. Friday’s bullish weekly high close in silver also gives the bulls technical momentum and suggests a near-term low is in place. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.00. First resistance is seen at $17.00 and then at $17.25. Next support is seen at today’s low of $16.61 and then at $16.50. Wyckoff's Market Rating: 3.5.
May N.Y. copper closed up 360 points at 279.70 cents today. Prices closed near the session high and hit an 11-week high today. The sharp losses in the U.S. dollar index today helped the copper bulls. The copper market bulls have gained the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 295.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 265.00 cents. First resistance is seen at today’s high of 280.05 cents and then at 282.50 cents. First support is seen at today’s low of 275.50 cents and then at 271.80 cents. Wyckoff's Market Rating: 6.0.
Source: KitcoNews
