(Kitco News) - Gold prices ended the U.S. day session solidly higher Wednesday, on follow-through technical and safe-haven buying following Tuesday’s decent gains. The bulls are keeping a near-term price uptrend in place, which continues to invite chart-based buyers. April Comex gold was last up $13.40 at $1,235.80 an ounce. March Comex silver was last up $0.04 at $15.28 an ounce.
Gold prices did back off from sharp gains seen in late-morning trading, as crude oil prices moved higher following a weekly U.S. liquid energy storage report that was not as bearish as expected. Nymex crude oil futures on Wednesday afternoon were holding just below $32.00 a barrel.
Most world stock markets were under selling pressure again Wednesday, following losses on Tuesday. Weaker world equities markets have been bullish for gold recently. It’s all about the crude oil market for the world stock markets, at present. World equities markets continue to hinge upon the daily price machinations of oil.
Saudi Arabia’s oil minister on Tuesday said his country is not willing to reduce its crude oil output. He was speaking at a meeting in Texas. There were reports last week that Saudi Arabia, Russia and other OPEC countries were discussing holding the line on their crude oil production levels.
The other key “outside market” saw the U.S. dollar index trade near steady Wednesday, but the greenback bulls are having a good week, overall, as the USDX has seen good gains.
China is still a focal point for world traders and investors. Chinese officials again Wednesday lowered the value of the Chinese yuan currency against the U.S. dollar, which is unsettling to world foreign exchange markets. Later this week the Group of 20 industrial nations meets, and China’s economic issues are likely to be a major topic. China’s Shanghai stock index did close higher Wednesday, but other Asian stock markets finished lower.
The British pound hit a seven-year low against the U.S. dollar Wednesday, amid concerns the United Kingdom could see its voters in June opt to leave the European Union.
Technically, April gold futures prices closed near mid-range. Prices today saw a bullish upside “breakout” from a bullish symmetrical triangle pattern on the daily bar chart, to suggest more gains are coming. Prices are in a nine-week-old uptrend on the daily bar chart and bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at $1,250.00 and then at today’s high of $1,254.30. First support is seen at today’s low of $1,222.40 and then at $1,210.00. Wyckoff’s Market Rating: 7.0
March silver futures prices closed nearer the session low today. The silver market bulls and bears are now on a level near-term technical playing field amid choppy trading. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the February high of $15.99 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.64. First resistance is seen at $15.50 and then at today’s high of $15.595. Next support is seen at today’s low of $15.185 and then at this week’s low of $14.945. Wyckoff's Market Rating: 5.0.
March N.Y. copper closed up 5 points at 210.60 cents today. Prices closed near the session high today. The copper bears have the firm overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the February high of 213.80 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the contract low of 193.55 cents. First resistance is seen at this week’s high of 212.90 cents and then at 213.80 cents. First support is seen at 208.00 cents and then at today’s low of 206.45 cents. Wyckoff's Market Rating: 2.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
