Gold Prices Supported By Bullish Outside Markets

(Kitco News) - Gold prices are modestly up in early U.S. trading Thursday, supported by a weakerU.S. dollar index and by rallying crude oil prices that hit a three-year highovernight. Some chart-based buying is also featured in both gold and silverthis week, as the near-term technical postures for both markets are bullish. February Comex gold was last up $3.30 an ounce at $1,322.70. March Comex silver was lastdown $0.01 at $17.02 an ounce.

Worldstock markets were mixed overnight, as a rout in world government bond marketsstabilized Thursday. The Chinese government reportedly denied reports outWednesday that it would scale back its purchases of U.S. Treasury securities.U.S. stock indexes are pointed toward firmer openings when the New York daysession begins.

Inother overnight news, there were reports Chinese Premier Li Keqiang said theChinese economy grew by 6.9% in 2017.

Thekey outside markets on Thursday morning see the U.S. dollar index firmer. Thegreenback bears still have the overall near-term technical advantage.

Meantime,Nymex crude oil prices are higher and hit another three-year high of $64.08 abarrel overnight. The U.S. government is expected to rule on Friday whether itextends or waives economic sanctions against Iran. The recent rally in oilprices has been a positive development for the raw commodity sector.

U.S.economic data due for release Thursday includes the weekly jobless claimsreport, the producer price index, and the monthly Treasury budget statement.

Technically,Februarygold futures bulls have the overall near-term technical advantage.Prices are in a four-week-old uptrend on the daily bar chart. Bulls' nextupside technical objective is pushing and closing prices above chart resistanceat $1,350.00. Bears' next near-term downside price breakout objective isclosing prices below solid technical support at $1,300.00. First support isseen at the overnight low of $1,316.10 and then at $1,312.70. First resistanceis seen at this week's high of $1,328.60 and then at $1,335.00. Wyckoff's MarketRating: 6.0

Marchsilver bulls have the overall near-term technical advantage. Prices are stillin a four-week-old uptrend on the daily bar chart. The next upside price breakoutobjective is closing futures prices above solid technical resistance at theOctober high of $17.59 an ounce. The next downside price breakout objective forthe bears is closing prices below solid support at the October low of $16.435. Firstresistance is seen at $17.17 and then at last week's high of $17.32. Nextsupport is seen at this week's low of $16.93 and then at $16.75. Wyckoff'sMarket Rating: 6.0.

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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