- Gold prices ended the U.S. day session solidly higher and hit a 3.5-month high Thursday. Add the slumping U.S. dollar index to the list of bullish elements helping to drive gold and silver prices higher recently. Silver prices also scored a 3.5-month high Thursday. Safe-haven and technical buying continue to support the yellow metal amid volatile world stock markets that presently still have a downside bias. April Comex gold was last up $15.30 at $1,156.60 an ounce. March Comex silver was last up $0.126 at $14.86 an ounce.
The sharply lower U.S. dollar index the past couple days has helped to lift raw commodity markets. A weak U.S. manufacturing report on Wednesday spiked the dollar index lower, and there was follow-through selling pressure on the greenback Thursday. Most raw commodities on the world market are priced in U.S. dollars. A decline in the value of the dollar makes those commodities less expensive to purchase with non-U.S. currency.
The marketplace is now awaiting Friday morning’s U.S. employment report for January. The key non-farms payroll number is expected to be up 185,000 following a strong rise of 292,000 in December. A number outside of market expectations is likely to cause higher price volatility, at least in the aftermath of the 8:30 a.m. eastern standard time report.
Technically, April gold futures closed prices hit a 3.5-month high today and closed nearer the session high. Prices are in a six-week-old uptrend and the bulls have technical momentum on their side. Bears also have gained the slight overall near-term technical advantage for the first time in months. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,175.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,130.00. First resistance is seen at today’s high of $1,157.30 and then at $1,165.00. First support is seen at $1,150.00 and then at today’s low of $1,139.70. Wyckoff’s Market Rating: 5.5
- Gold, trading near its highest since October on Friday, is on track to score its strongest weekly gain in a month as the U.S. dollar is pressured by growing doubts that the Federal Reserve can stick to its interest rate hike campaign.
* Spot gold was flat at $1,154.20 an ounce by 0019 GMT, after peaking at $1,157.20 on Thursday, its highest since Oct. 29.
* Gold has gained more than 3 percent so far this week, on course for its biggest such increase since early January.
* U.S. gold for April delivery eased 0.2 percent to $1,154.70 an ounce.
* A shaky global economy from China to Europe and similarly volatile financial markets elsewhere have lifted buying interest in gold. The momentum increased this week after a key Fed official said there is a need to take into consideration tighter financial conditions and the weakening global outlook in framing U.S. monetary policy.
* That spurred gold bulls, thinking it would be tough for the Fed to raise interest rates again this year after hiking them in December for the first time in nearly a decade.
* Non-interest bearing gold is quite sensitive to U.S. monetary policy. Its recent upturn has prompted some analysts to have a more positive price outlook on the metal many had thought was bound to fall below $1,000 an ounce this year as the U.S. lifts rates.
* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, continued to rise along with the gold price, reaching 22.3 million ounces on Thursday, the most since late October.
* Focus on Friday turns to the U.S. employment report and analysts say a stronger-than-expected reading could aid the dollar and stall gold's rally.
* Economists polled by Reuters are looking for U.S. nonfarm payrolls to increase by 190,000 in January, after rising by 292,000 in December. The unemployment rate is forecast to remain at a 7-1/2-year low of 5 percent.
* Gold could face resistance around $1,160-$1,165, technical analysts say.
Reference: Reuters, Kitco
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