(Kitco News) - Gold prices ended the U.S. day session with slight gains Wednesday, as traders “bought the dip” in prices that occurred earlier this week. However, increased trader and investor risk appetite in the marketplace so far this week is a bearish element working against the safe-haven gold market. April Comex gold was last up $1.20 at $1,209.40 an ounce. March Comex silver was last up $0.006 at $15.34 an ounce.
Most global stock markets are seeing gains this week, on ideas crude oil prices may have bottomed out and can work sideways to higher in the coming weeks. Equity markets have been closely tracking daily movements in the crude oil market recently. Nymex crude oil prices were higher and trading just above $30.00 a barrel in early afternoon U.S. dealings. Recent slumping oil prices have driven world stock markets solidly lower so far in 2016.
Asian stock markets were mixed Wednesday, following news that China’s central bank lowered the value of the yuan currency against the U.S. dollar, as well as injected more liquidity into the Chinese financial system.
There is still talk in the marketplace about a proposal from Russia, Saudi Arabia, Venezuela and Qatar to hold the line on their existing crude oil production levels, if other key OPEC nations will do the same. Iran and Iraq are the two countries seeing the most pressure from OPEC to agree to the plan. Principals are meeting in Tehran today to further discuss the matter. Still, many have doubts such an agreement can hold up.
There was a heavier slate of U.S. economic data released Wednesday but it had a just a minimal, if any, impact on the precious metals markets.
Technically, April gold futures prices closed nearer the session high. Prices are in a two-month-old uptrend on the daily bar chart and bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,150.00. First resistance is seen at today’s high of $1,214.40 and then at $1,220.00. First support is seen at $1,200.00 and then at this week’s low of $1,191.50. Wyckoff’s Market Rating: 6.0
