Gold At 3-Week High As Bulls Cap A Very Good Week

(Kitco News) - Goldpricesare modestly up and have hit a three-week high in early U.S. tradingFriday. Gold prices have gained over $40.00 an ounce this week, with bullspoised to push prices still higher next week. April Comex gold futures werelast up $3.80 an ounce at $1,359.10. March Comex silver was last down $0.006 at$16.79 an ounce.

Globalstock markets were mostly higher overnight. U.S. stock indexes are pointedtoward firmer openings when the New York day session begins. The U.S. stockindexes have now regained all or most of last week's strong losses. Today willbe an extra important trading day for the U.S. stock indexes. If the dailyvolatility remains low and prices can close at or near their weekly highstoday, then bulls would be much more comfortable they can continue to pushprices north next week.

Chinaand other Asian markets were closed Friday for the Lunar New Year holiday.

Thekey outside markets on Friday morning see the U.S. dollar index firmer on a correctiverebound from this week's strong selling pressure. The dollar index did hit athree-year low overnight, with the Euro currency pushing to a three-year high. Meantime,Nymex crude oil prices are firmer early today and trading around $61.50 abarrel. The oil market bulls have made a good recovery this week, too.

U.S.economic data due for release Friday includes import and export prices, newresidential construction, and the University of Michigan consumer sentimentsurvey.

Technically,April gold futures bulls have the firm overall near-term technical advantage. Bulls'next upside technical objective is pushing and closing prices above chartresistance at the January high of $1,370.50. Bears' next near-term downsideprice breakout objective is closing prices below solid technical support at $1,320.00.First support is seen at $1,350.00 and then at $1,340.00. First resistance isseen at today's high of $1,364.40 and then at $1,370.50. Wyckoff's MarketRating: 7.0

March silver bears have the slight overall near-term technical advantage. The nextupside price breakout objective is closing futures prices above solid technicalresistance at $17.00 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the February low of $16.13. Firstresistance is seen at this week's high of $16.95 and then at $17.00. Nextsupport is seen at $16.605 and then at $16.50. Wyckoff's Market Rating: 4.5.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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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