Gold Up On Some Safe-Haven Demand

(Kitco News) - Gold prices ended the U.S. day session moderately higher Thursday. Some safe-haven demand was seen in the yellow metal as Asian and European stock markets were mostly weaker overnight, following the abrupt sell-off in U.S. equities Wednesday afternoon. June Comex gold was last up $5.40 an ounce at $1,254.00. May Comex silver was last up $0.068 at $18.255 an ounce.

The wobbly U.S. stock indexes recently have led to ideas the mature bull market run in the stock market could be coming to an end. The closely watched S&P 500 stock index is presently in a near-term price downtrend. When the world stock markets do start to back down from their highs—and they most certainly will at some point--the competing asset classes will benefit from the change in money flows, including the precious metals.

Traders and investors will be closely watching the meetings between U.S. President Donald Trump and Chinese leader Xi Jinping on Thursday and Friday. The leaders of the world’s two largest economies could come into some conflict over trade and currency matters.

The monthly U.S. employment report is due out Friday morning. That’s arguably the most important U.S. economic data point of the month. The key non-farm payrolls number was seen coming in at up around 180,000 in March. However, Wednesday’s much-larger-than-expected rise of 263,000 jobs in the March ADP employment report has many ratcheting up their forecasts for the Labor Department’s jobs report on Friday morning.

The key outside markets on Thursday saw the U.S. dollar index modestly higher. The greenback bulls have the overall near-term technical advantage. Meantime, Nymex crude oil prices were up after hitting a four-week high Wednesday. The oil bulls have upside technical momentum to suggest prices can at least trade sideways, if not sideways to higher, in the near term. 

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Technically, June gold futures prices closed near mid-range today. The gold bulls have the slight overall near-term technical advantage. However, price action has been choppy and sideways the past two weeks. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,268.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at today’s high of $1,260.90 and then at the March high of $1,264.20. First support is seen at this week’s low of $1,245.40 and then at last week’s low of 1,241.50. Wyckoff's Market Rating: 5.5

May silver futures prices closed near mid-range today. The silver market bulls have the overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the February high of $18.54 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.50. First resistance is seen at this week’s high of $18.43 and then at $18.54. Next support is seen at this week’s low of $18.09 and then at $18.00. Wyckoff's Market Rating: 6.0.

May N.Y. copper closed down 215 points at 265.90 cents today. Prices closed nearer the session low today. 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 275.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the March low of 255.85 cents. First resistance is seen at this week’s high of 269.50 cents and then at 272.50 cents. First support is seen at today’s low of 264.85 and then at 252.50 cents. Wyckoff's Market Rating: 6.0.