(Kitco News) - Gold prices ended the U.S. day session moderately higher Thursday, on some bargain hunting buying interest following recent selling pressure. The precious metals are also benefiting from an eroding U.S. dollar index, which dropped to a 5.5-month low today. Even though trading in the gold market has turned choppy recently, the bulls are still maintaining the overall near-term technical advantage. June Comex gold was last up $7.20 at $1,235.60 an ounce. May Comex silver was last up $0.244 at $15.455 an ounce.
Global stock markets were under some pressure Thursday, on this last trading day of the month and of the quarter. U.S. stock indexes were slightly high in afternoon trading. This week’s sell off in many raw commodity markets, led by crude oil, is a bearish element working against stock market bulls. It appears the bullish effects of Fed Chair Janet Yellen’s perceived very dovish monetary policy comments on Tuesday have quickly dissipated.
In overnight news, inflation in the Euro zone remains troublingly low. Eurostat’s flash estimate showed annual inflation in the region was at minus 0.1% in March, following a reading of minus 0.2% in February. The March number was in line with expectations. However, the European Central Bank wants to see an annual inflation number for the Euro zone of up 2.0%.
The U.S. dollar index traded lower again Thursday and hit a 5.5-month low. The greenback bears are having a good week so far, and have taken back all of last week’s gains. Meantime, Nymex crude oil futures prices were slightly higher in afternoon trading, and hovering just above $39.00 a barrel.
Traders and investors are awaiting Friday morning’s U.S. employment report for March from the Labor Department. This report is arguably the most important economic report of the month. The key non-farm payrolls number is expected to show a rise of just over 200,000 in March. Trading in many markets could become volatile in the immediate aftermath of the jobs report.
Technically, June gold futures prices closed near mid-range. Gold 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 $1,264.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,207.70. First resistance is seen at this week’s high of $1,246.80 and then at $1,250.00. First support is seen at today’s low of $1,225.10 and then at Tuesday’s low of $1,217.00. Wyckoff’s Market Rating: 6.5
May silver futures prices closed nearer the session high today on short covering and bargain hunting. The silver market bulls and bears are still on an overall level near-term technical playing field. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the March high of $16.17 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $15.00. First resistance is seen at today’s high of $15.55 and then at $15.75. Next support is seen at today’s low of $15.20 and then at this week’s low of $15.06. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed down 30 points at 218.70 cents today. Prices closed near mid-range today and hit a four-week low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the March high of 232.35 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the 210.00 cents. First resistance is seen at today’s high of 220.10 cents and then at 222.10 cents. First support is seen at today’s low of 216.60 cents and then at 215.00 cents. Wyckoff's Market Rating: 4.0.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow me on Twitter @jimwyckoff
