Gold prices ended the U.S. day session near steady Wednesday, on technical consolidation after posting solid gains Tuesday. Meantime, silver continued its upside assault and hit another 10.5-month high. June Comex gold was last up $0.20 at $1,254.50 an ounce. May Comex silver was last up $0.178 at $17.15 an ounce.
Gold held overnight losses on Thursday, while silver steadied below an 11-month top as the dollar firmed against the euro and equities inched higher.
Spot gold XAU= was little changed at $1,243.90 an ounce by 0046 GMT, after dropping 0.5 percent in the previous session.
U.S. gold futures GCcv1 eased 0.6 percent to $1,246, catching up with moves in the spot market.
The dollar rose 0.5 percent against a basket of major currencies on Wednesday as the euro slipped ahead of the European Central Bank meet on Thursday.
Silver has outperformed other precious metals in recent days, helped by a break through chart resistance at its late October high on Tuesday and increasing optimism about China. Silver has more industrial use than the other precious metals.
Bullion traders will be eyeing the ECB meeting later in the session for any impact on the dollar. The ECB is not expected to make any policy change at its rate-setting meeting on Thursday.
The focus will also be on U.S. economic data that could affect the Federal Reserve's monetary policy.
Technically, June gold futures prices closed near mid-range. The gold bulls have the firm overall near-term technical advantage and have regained upside momentum at mid-week. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the April high of $1,264.70. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of 1,225.40. First resistance is seen at today’s high of $1,259.80 and then at $1,264.70. First support is seen at today’s low of $1,247.10 and then at $1,240.00. Wyckoff’s Market Rating: 7.0
Reference: Reuters, Kitco
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