Gold Scores 3-Mo. High As Bullish Momentum Building

(Kitco News) - Gold and silver prices were ending the U.S. day session higher and hit nearly three-month highs Wednesday. Gold continues to see safe-haven demand coming from worries about the new U.S. president and from upcoming elections in Europe. Meantime, the near-term chart postures for gold and silver markets are turning more bullish, which is inspiring technically based buying interest for both metals. April Comex gold was last up $6.50 an ounce at $1,242.60. March Comex silver was last up $0.029 at $17.785 an ounce.

The marketplace is still a bit apprehensive about any new directives issued from U.S. President Trump. This unconventional U.S. president can rattle cages in a hurry. This has the world marketplace still a bit anxious and uncertain about what the President Donald Trump will do next, and that’s bullish for safe-haven gold.

Recent comments from France presidential candidate and  nationalist “National Front” party leader Marine Le Pen, saying that if elected president of France she would back France away from the European Union, have unnerved European traders and investors.

The U.S. dollar index backed off a bit Wednesday following good gains scored on Monday and Tuesday, and that was also supportive for the precious metals markets. Still, this week’s price action has negated a downtrend on the daily chart for the U.S. dollar index.

The other key “outside market” on Wednesday saw Nymex crude oil prices trade lower and hit a nine-week low. Rising U.S. shale oil production levels, as reported in weekly rig counts and storage reports, are a significantly bearish element for the crude oil market. Technicals in the crude oil market are also turning bearish.

Technically, April gold futures prices closed nearer the session high and hit a nearly three-month high today. The gold bulls have the overall near-term technical advantage and have momentum on their side. Prices are in a six-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,265.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,210.00. First resistance is seen at today’s high of $1,246.60 and then at $1,250.00. First support is seen at today’s low of $1,231.30 and then at $1,225.00. Wyckoff's Market Rating: 6.0

March silver futures prices closed nearer the session high and hit a nearly three-month high today. The silver market bulls have the overall near-term technical advantage. Prices are in a six-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $18.00 and then at $18.25. Next support is seen at this week’s low of $17.46 and then at $17.26. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed up 360 points at 266.80 cents today. Prices closed near mid-range. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the November high of 275.30 cents. The next downside price objective for the bears is closing prices below solid technical support at 250.00 cents. First resistance is seen at today’s high of 269.10 cents and then at 270.00 cents. First support is seen at today’s low of 263.20 and then at last week’s low of 261.20 cents. Wyckoff's Market Rating: 7.0.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com