Gold Pushes To 3.5-Mo. High On Safe-Haven Buying, Weaker Greenback

(Kitco News) - Gold prices ended the U.S. day session with solid gains and notched a 3.5-mongh high Thursday. Silver prices also hit a 3.5-month high. Buy stops in both futures markets were triggered by today’s push in prices above the previous for-the-move highs. There continues to be a steady flow of safe-haven demand into gold from traders and investors worldwide. The U.S. dollar index was also weaker Thursday, following recent gains, and that was positive daily element working in favor of the precious metals market bulls. April Comex gold was last up $17.60 an ounce at $1,250.90. March Comex silver was last up $0.175 at $18.12 an ounce.

Recent reports have said there continues to be a steady flow of monies into gold-back exchange-traded funds (ETFs). And despite some recent hawkish rhetoric coming from Federal Reserve officials, many are still skeptical the Fed will raise U.S. interest rates at the March FOMC meeting. A faster pace of Fed tightening of monetary policy would be a bearish element for the raw commodity sector, including the precious metals.

Ongoing uncertainty and some anxiety regarding the new U.S. president and his administration’s new and potentially aggressive policies continue to support the gold market.

The key “outside markets” on Thursday saw the U.S. dollar index trade modestly lower. However, the greenback bulls have the overall near-term technical advantage amid a fledgling price uptrend on the daily chart. Meantime, Nymex crude oil futures prices were higher today. Oil prices are still in a sideways trading range that has bound the market for weeks.

Technically, April gold futures prices closed nearer the session high today. The gold bulls still have the firm overall near-term technical advantage and gained more power today. Prices are in a nine-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 $1,275.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,217.50. First resistance is seen at the today’s high of $1,252.20 and then at $1,260.00. First support is seen at $1,246.50 and then at today’s low of $1,236.40. Wyckoff's Market Rating: 6.5

March silver futures prices closed nearer the session high today. The silver market bulls have the firm overall near-term technical advantage. Prices are in a two-month-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $19.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.25. First resistance is seen at today’s high of $18.21 and then at $18.50. Next support is seen at today’s low of $17.925 and then at this week’s low of $17.815. Wyckoff's Market Rating: 6.5.

March N.Y. copper closed down 910 points at 264.20 cents today. Prices closed near the session low on heavy profit taking. The copper bulls still have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the February high of 282.30 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 270.00 cents and then at today’s high of high of 273.85 cents. First support is seen at today’s low of 263.90 and then at 260.00 cents. Wyckoff's Market Rating: 6.0.