Gold and silver prices posted solid gains Monday, amid bullish “outside markets” that saw the U.S. dollar index lower and crude oil prices higher. Both precious metals markets hit nearly three-week highs today. June Comex gold was last up $13.80 at $1,257.50 an ounce. May Comex silver was last up $0.551 at $15.935 an ounce.
Gold jumped to a three-week peak on Tuesday on expectations the Federal Reserve will not raise U.S. interest rates soon and as the dollar traded close to its lowest in nearly eight months.
Spot gold XAU= rose to $1,259.66 an ounce early on Tuesday, its highest since March 18. However, it pared gains to trade down 0.2 percent at $1,254.70 an ounce by 0036 GMT, on profit-taking following a 1.4-percent overnight gain.
The U.S. dollar index dropped to an eight-month low Monday as prices continue to trend lower in the wake of perceived dovish rhetoric coming from U.S. Federal Reserve officials. Meantime, Nymex crude oil prices pushed above $40.00 a barrel Monday as there are near-term technical clues this market has bottomed out. A major oil-producers’ meeting is scheduled for next Sunday, at which time participants will discuss limiting their production levels.
Technically, June gold futures prices closed near the session high. Gold bulls have the overall near-term technical advantage and gained some fresh upside momentum today. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the March high of $1,287.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,225.00. First resistance is seen at the February high of $1,264.10 and then at $1,273.00. First support is seen at $1,250.00 and then at today’s low of $1,241.60. Wyckoff’s Market Rating: 7.0
Reference: Reuters, Kitco
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