(Kitco News) – Gold prices are mildly higher after hitting nearly three-week highs in earlier U.S. trading Thursday. The yellow metal has backed down from its session highs on reports an Israel-Hamas ceasefire may be close at hand. However, there has been no confirmation of such. Gold is being supported by safe-haven buying and by bullish daily outside market forces that include a weaker U.S. dollar index and a dip in U.S. Treasury yields. April gold futures were last up $5.20 at $2,072.90. March silver was last up $0.076 at $23.24.
Despite the Israel-Hamas cease-fire talk, traders and investors have not forgotten the fact the U.S. is set to retaliate against Iran-backed Houthi rebels for killing three U.S. soldiers and wounding many more–and probably sooner rather than later. President Biden said the U.S. military response will be strong and in stages. That’s prompting the safe-haven buying in gold.
The marketplace has digested the Open Market Committee meeting of the Federal Reserve that concluded Wednesday afternoon and leaned slightly hawkish. The monetary policy doves were hoping for a March FOMC rate cut, but now the earliest rate cut is seen by many as coming in June. Traders are now focusing on Friday morning’s monthly U.S. jobs report from the Labor Department. The January non-farm payrolls component of the report is expected to show a rise of 175,000, compared to a gain of 216,000 in the December report.
U.S. stock index futures were higher in midday trading, on rebounds from Wednesday’s FOMC-induced sell off.
The key outside markets today see the U.S. dollar index lower and near the session low—losing overnight gains. Nymex crude oil prices are lower and sold off on the ceasefire rumors, and is trading around $74.50 a barrel. Meantime, the yield on the benchmark U.S. Treasury 10-year note is presently fetching 3.852%.
Technically, April gold futures prices hit a nearly three-week high today. The bulls have the overall near-term technical advantage. A six-week-old downtrend on the daily bar chart has been negated. Bulls’ next upside price objective is to produce a close above solid resistance at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at $2,086.70 and then at $2,100.00. First support is seen at $2,060.00 and then at $2,050.00. Wyckoff’s Market Rating: 7.0.
March silver futures bears have the overall near-term technical advantage. A seven-week-old downtrend is in place on the daily bar chart, but now
just barely. Silver bulls’ next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at the October low of $21.17. First resistance is seen at this week’s high of $23.445 and then at $23.72. Next support is seen at $23.00 and then at today’s low of $22.605. Wyckoff’s Market Rating: 4.0.
March N.Y. copper closed down 475 points at 385.85 cents today. Prices closed nearer the session low today. 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 the December high of 397.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 371.45 cents. First resistance is seen at today’s high of 389.75 cents and then at this week’s high of 394.70 cents. First support is seen at this week’s low of 382.75 cents and then at 380.00 cents. Wyckoff’s Market Rating: 5.5.
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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.
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