Gold dips on higher stocks; Fed minutes offer some support
- Gold eased on Thursday following a bounce in equities, but losses were cushioned by overnight gains that helped the metal snap a three-day losing streak on bets the Federal Reserve could slow the pace of U.S. interest rate hikes.
Bank of America Merrill Lynch on Wednesday reduced its forecast for the number of times the Fed will raise U.S. interest rates this year to two from its earlier projection of three to four due to recent market turbulence.
- Gold prices ended the U.S. day session with slight gains Wednesday, as traders “bought the dip” in prices that occurred earlier this week. However, increased trader and investor risk appetite in the marketplace so far this week is a bearish element working against the safe-haven gold market. April Comex gold was last up $1.20 at $1,209.40 an ounce. March Comex silver was last up $0.006 at $15.34 an ounce.
Most global stock markets are seeing gains this week, on ideas crude oil prices may have bottomed out and can work sideways to higher in the coming weeks. Equity markets have been closely tracking daily movements in the crude oil market recently. Nymex crude oil prices were higher and trading just above $30.00 a barrel in early afternoon U.S. dealings. Recent slumping oil prices have driven world stock markets solidly lower so far in 2016.
Technically, April gold futures prices closed nearer the session high. Prices are in a two-month-old uptrend on the daily bar chart and bulls 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 last week’s high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,150.00. First resistance is seen at today’s high of $1,214.40 and then at $1,220.00. First support is seen at $1,200.00 and then at this week’s low of $1,191.50. Wyckoff’s Market Rating: 6.0
Reference: Kitco, Reuters
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