Jim Wyckoff Thursday March 16, 2017 13:51
(Kitco News) - Gold and silver prices ended the U.S. day session sharply higher Thursday. The precious metals bulls are revived after a two-week meltdown in prices. Short covering in the futures markets and bargain hunting in the cash markets were featured following the recent strong selling pressure. A weakening U.S. dollar index late this week has helped to rally gold and silver markets. April Comex gold was last up $26.50 an ounce at $1,227.00. May Comex silver was last up $0.332 at $17.255 an ounce.
There are now early technical clues the gold and silver markets have put in near-term bottoms, which suggests prices can now trade at least sideways, if not sideways to higher in the near term.
The marketplace on Thursday was still digesting the U.S. interest rate increase from the Federal Reserve. The FOMC raised U.S. interest rates by 0.25% Wednesday afternoon, which was fully expected. The marketplace deemed the FOMC statement and Yellen press conference as not being too hawkish on monetary policy, and possibly less aggressive on fighting inflation, which rallied most commodity markets and pressured the U.S. dollar index.
The key outside markets on Thursday saw the U.S. dollar index trade lower after solid losses posted Wednesday. The dollar index has seen its near-term price uptrend broken this week and the greenback bears now have downside technical momentum. Nymex crude oil prices were weaker this afternoon. Prices hit a four-month low Tuesday. Still, the crude oil bears now appear to be exhausted after recent strong selling pressure, which begins to hint at a near-term market bottom being in place.
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Technically, April gold futures prices closed nearer the session high. This week’s big rebound in prices suggests that a near-term market bottom is in place. The gold bears do still have the overall near-term technical advantage. 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 $1,200.00. First resistance is seen at today’s high of $1,234.00 and then at $1,240.00. First support is seen at today’s low of $1,218.10 and then at $1,210.00. Wyckoff's Market Rating: 4.0
May silver futures prices closed nearer the session low. While the silver market bears still have the overall near-term technical advantage, this week’s rebound begins to hint that a near-term market bottom is in place. 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 $16.50. First resistance is seen at today’s high of $17.585 and then at $17.82. Next support is seen at $17.00 and then at this week’s low of $16.825. Wyckoff's Market Rating: 4.0.
May N.Y. copper closed up 170 points at 267.35 cents today. Prices closed nearer the session low and saw more short covering. The copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 270.95 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 269.75 cents and then at 272.00 cents. First support is seen at 263.70 and then at 260.00 cents. Wyckoff's Market Rating: 5.5.
By Jim Wyckoff
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