(Kitco News) - The solid rally in the gold market Thursday was a feature in the world marketplace. Safe-haven demand again surfaced for the yellow metal as a referendum in the Netherlands on European Union-Ukraine trade relations failed, prompting more concerns about the U.K. referendum in June to opt out of the European Union. A U.K. exit from the European Union could spell the eventual doom for the EU. A weaker U.S. dollar index that hit a nearly eight-month low Thursday was also a positive for the precious metals markets. June Comex gold was last up $15.00 at $1,238.90 an ounce. May Comex silver was last up $0.151 at $15.205 an ounce.
Global stock markets were mostly weaker Thursday, amid the risk aversion on this day. Stock market traders continue to look to the crude oil market for direction. Oil prices were lower Thursday and gave back about half of the strong gains scored Wednesday.
The surging value of the Japanese yen on the foreign exchange market recently also spooked the marketplace a bit. The yen is at a 1.5-year high versus the U.S. dollar. There are economic and financial troubles in Japan that have monetary officials in that country pulling out all the stops to try to start some price inflation.
In other overnight news, Federal Reserve official Charles Evans said in a speech that he sees two U.S. interest rate hikes this year as appropriate. He also said the Fed at its upcoming meetings will discuss the ramifications of the June U.K. referendum on the EU—which many are calling “Brexit.”
Technically, June gold futures prices closed near mid-range. Gold bulls have the overall near-term technical advantage and are showing resilience. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the March low of 1,207.70. First resistance is seen at today’s high of $1,245.00 and then at last week’s high of $1,246.80. First support is seen at $1,230.00 and then at today’s low of $1,224.00. Wyckoff’s Market Rating: 6.5
May silver futures prices closed near mid-range today and saw more short covering. The silver market bulls and bears are now back on a level 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 $14.61. First resistance is seen at today’s high of $15.365 and then at $15.55. Next support is seen at today’s low of $15.055 and then at this week’s low of $14.895. Wyckoff's Market Rating: 5.0.
May N.Y. copper closed down 680 points at 207.55 cents today. Prices closed near the session low today and hit a six-week low. The copper bears have the solid overall near-term technical advantage and gained fresh power today. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 220.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 200.00 cents. First resistance is seen at 210.00 cents and then at 213.00 cents. First support is seen at today’s low of 207.05 cents and then at 205.00 cents. Wyckoff's Market Rating: 2.5.
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
