Gold, Silver Prices Up On Technical Buying

(Kitco News) - Gold and silver prices are higher in early U.S. trading Wednesday. Silver prices have hit a 2.5-month high and are trading above $17.00. The chart postures for both metals are tilted in favor of the bulls, which is inspiring technically based buying interest at mid-week. June Comex gold futures were last up $6.10 an ounce at $1,355.50. May Comex silver was last up $0.283 at $17.08 an ounce.

World stock markets were mostly higher again overnight. U.S. stock indexes are also pointed toward higher openings when the New York day session begins. Strong first-quarter corporate earnings reports are driving the bulls this week, while geopolitics has taken a back seat, for now. Risk appetite is keen so far this week.

The ability of gold and silver to post price gains today, amid little risk aversion in the marketplace, is impressive.

In overnight news, China effectively slightly eased its monetary policy Wednesday by lowering the reserve requirement ratio for its banks.

The Euro zone consumer price index for March was reported up 1.0% from February and up 1.3%, year-on-year. Those numbers were very close to market expectations.

The key “outside markets” on Wednesday morning see the U.S. dollar index trading slightly higher. Nymex crude oil prices are also higher and trading well above $67.00 a barrel.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the Federal Reserve’s beige book, and the weekly DOE liquid energy stocks report.

Live 24 hours gold chart [Kitco Inc.]

Technically, June gold bulls have the firm overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,375.50. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at the March low of $1,309.30. First resistance is seen at $1,362.60 and then at the April high of $1,356.60. First support is seen at the overnight low of $1,345.00 and then at $1,340.00. Wyckoff’s Market Rating: 6.5

Live 24 hours silver chart [ Kitco Inc. ]

May silver futures bulls have gained the overall near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at the January high of $17.785 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at $17.25 and then at $17.50. Next support is seen at $17.00 and then at the overnight low of $16.73. Wyckoff’s Market Rating: 6.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Source: Gold, Silver Prices Up On Technical Buying

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