Gold Firmer On Friendly Outside Markets, Weaker U.S. Stocks

Published: May 12, 2017 10:20 (GMT+8)

Save

Gold prices were ending the U.S. day session firmer Thursday, supported by some short covering by the shorter-term futures traders and on perceived bargain hunting in the cash market.

Jim Wyckoff

Thursday May 11, 2017 13:13

(Kitco News) - Gold prices were ending the U.S. day session firmer Thursday, supported by some short covering by the shorter-term futures traders and on perceived bargain hunting in the cash market. Weaker U.S. stock indexes today are also a positive for the safe-haven gold market. June Comex gold was last up $5.80 an ounce at $1,224.70. July Comex silver was last up $0.133 at $16.34 an ounce.

The outside markets on Thursday also benefitted the precious metals market bulls. The U.S. dollar index was slightly higher. Crude oil prices were also higher today. Oil prices have made a good rebound this week, after scoring a 12.5-month low last week. This week’s rally in crude suggests the market has put in a near-term bottom. That would be good news for the raw commodity markets, including the precious metals.

The geopolitical front has been quieter the past few weeks. That has limited trader and investor demand for gold. However, I look for geopolitical matters to become more prevalent in the markets in the coming weeks and months. That should benefit the gold market.

Technically, June gold futures prices closed nearer the session high today. The gold bears still have the overall near-term technical advantage. Prices are in a three-week-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. 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 $1,227.70 and then at this week’s high of $1,236.90. First support is seen at this week’s low of $1,214.30 and then at 1,210.00. Wyckoff's Market Rating: 3.5

July silver futures prices closed near mid-range and saw tepid short covering in a bear market. Prices earlier this week hit a four-month low. The silver market bears have the solid overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the December low of $15.859. First resistance is seen at today’s high of $16.39 and then at this week’s high of $16.455. Next support is seen at this week’s low of $16.06 and then at $16.00. Wyckoff's Market Rating: 1.5.

July N.Y. copper closed up 85 points at 250.30 cents today. Prices closed nearer the session low today. Prices earlier this week hit a 4.5-month low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 246.25 cents. First resistance is seen at today’s high of 255.30 cents and then at 258.00 cents. First support is seen at this week’s low of 247.25 cents and then at 246.25 cents. Wyckoff's Market Rating: 4.0.

gold prices precious metals

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

5 hours ago

Tanzania’s Imwelo selects processing route after gold recovery rises to 84.5%

[SMM Gold Flash] Lake Victoria Gold reported new metallurgical testwork for weathered ore at Area C of its fully permitted Imwelo Gold Project in Tanzania. Attrition scrubbing followed by desliming increased 24-hour gold extraction from 49.99% to 84.54% in agitated-leach testing. Bottle-roll recovery reached 88.15% after pretreatment, while gravity-recoverable gold also increased. The work was conducted by Nesch Mintech Tanzania in Mwanza. The company has identified attrition scrubbing and desliming as the preferred pretreatment route for further optimisation of the clay-rich near-surface material. Lake Victoria Gold says the results complement earlier work on deeper material, where recoveries of approximately 96–97% were reported. Importantly, the reported recoveries relate to tested pretreated fractions and do not yet represent overall whole-ore plant recovery; further mass-balance and optimisation work is planned.

5 hours ago

Aurum drilling delivers 155 g/t gold hit at Côte d’Ivoire’s Boundiali

[SMM Gold Flash] Aurum Resources reported new assay results from 22 diamond holes totalling 6,172.8 metres at the BST1 deposit at its Boundiali Gold Project in Côte d’Ivoire. The results include 2.63 metres at 76.74 g/t gold from 195.2 metres, including 1.3 metres at 155 g/t, together with 24 metres at 6.31 g/t from 108 metres, including 7 metres at 19.25 g/t. Several intersections extend beyond the existing BST1 resource envelope. The results will feed into Aurum’s planned Boundiali Mineral Resource update targeted for early Q4 2026. The company says mineralisation remains open along strike and at depth, while drilling continues across the project. The results are therefore an exploration and resource-growth development rather than additional production. Boundiali currently has a 3.22-million-ounce JORC Mineral Resource, while Aurum is advancing a definitive feasibility study.

5 hours ago

Platinum Shows Stronger Inflation and Real-Rate Linkages Than Gold, Study Finds

[SMM Gold & PGM Flash] A new study published in the Journal of Commodity Markets finds that platinum has exhibited broader and more persistent co-movement with inflation and real interest rates than gold. Researchers Arusha Cooray and İbrahim Özmen examined monthly data from July 1999 through December 2024 across the US, Germany, Italy, France, Switzerland and the Netherlands, using turning-point analysis, wavelet coherence and time-varying Granger-causality methods. The study found gold’s macroeconomic relationships were comparatively weaker and more fragmented, while platinum and silver showed broader synchronization, particularly in the US and Germany. The researchers attribute platinum’s stronger macroeconomic sensitivity in part to its substantial industrial exposure, meaning its price reflects not only monetary conditions but also manufacturing activity, investment and supply constraints. The findings do not establish platinum as a universally superior inflation hedge: the relationships varied across countries, periods and monetary-policy regimes. Instead, the study highlights a fundamental difference between the metals, with gold’s broader monetary and defensive role producing a different response to inflation and real-rate conditions.

5 hours ago