Gold Gains On Bargain Hunting, Short Covering
(Kitco News) - Gold pricesare posting good gains in early U.S. trading Thursday, on some bargain huntingin the cash market and on short covering in the futures market. A weaker U.S.dollar index and lower U.S. stock indexes today are working in favor of theprecious metals market bulls. June Comex gold futures were last up $11.60 anounce at $1,317.20. July Comex silver was last up $0.195 at $16.57 an ounce.
Themarketplace has quickly moved past Wednesday afternoon's FOMC statement, whichannounced no change in U.S. monetary policy, and hinted that the FederalReserve is not quite as concerned about inflationary pressures as in recentmonths. The gold market did see some slight appreciation after the FOMCstatement, on notions the Fed will not be too aggressive in raising interestrates in the coming months.
Inovernight news, the inflation rate in the Euro zone was up 1.2% in April versusup 1.3% in March, on an annual basis. The European Central Bank would like tosee annual inflation at 2.0%.
TheWorld Gold Council reported today that global demand for the yellow metal fell7% in the first quarter of this year, compared to the same period last year.India and China led the decline, on weakening demand for bars and coins.
AU.S. high-level trade delegation is in China Thursday to try to avert a tradewar between the world's two largest economies. The marketplace will closelywatch the news outlets for updates on progress at the meeting.
OnFriday is the April U.S. employment report from the Labor Department-arguablythe most important U.S. data point of the month. The key non-farm payrollsnumber is forecast to come in at up 195,000.
Theoutside markets today see the U.S. dollar index slightly lower on a correctivepullback after hitting a 4.5-month high on Wednesday. Meantime, Nymex crude oil prices are slightly up and trading around $68.00 a barrel.
It'sa busy day for U.S. economic data Thursday, including the weekly jobless claimsreport, the Challenger job-cuts report, preliminary productivity and costs, theinternational trade report, the U.S. services PMI, manufacturers' shipments andinventories, and the ISM non-manufacturing report on business.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.2924175530478188)
Technically,Junegold bulls and bears are on a level overall near-term technical playingfield. Gold bulls' next upside near-term price breakout objective is to producea close above solid technical resistance at last week's high of $1,337.60.Bears' next near-term downside price breakout objective is pushing prices belowsolid technical support at $1,300.00. First resistance is seen at $1,320.00 andthen at $1,325.00. First support is seen at $1,309.00 and then at this week'slow of $1,302.30. Wyckoff's Market Rating: 5.0
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
Julysilver futures bears have the overall near-term technical advantage. Silverbulls' next upside price breakout objective is closing prices above solidtechnical resistance at $17.00 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $16.00. Firstresistance is seen at $16.75 and then at $16.89. Next support is seen at theovernight low of $16.385 and then at $16.25. Wyckoff's Market Rating: 3.5.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff
jwyckoff@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.