Gold Lifted By Bullish Outside Market Forces

(Kitco News) - Gold prices ended the U.S. day session moderately higher Thursday. The preciousmetal was lifted by a lower U.S. dollar index and by higher crude oil pricesthat hit a three-year high today. Some technical buying is also featured ingold, as the near-term chart posture is getting more bullish. February Comex gold was last up $3.80 an ounce at $1,323.00. March Comex silver was last down$0.06 at $16.97 an ounce.

Therout in world government bond markets stabilized Thursday, which allowed worldstock markets to recover or even rally a bit. The Chinese government has deniedit is planning to scale back its purchases of U.S. Treasury securities, reportssaid Thursday.

U.S.stock indexes hit new record highs Thursday, but the competing asset class goldstill managed gains, which is impressive to the yellow metal bulls and hints ofmore upside for gold.

Thekey outside markets on Thursday saw the U.S. dollar index solidly lower. Thegreenback bears have the firm0 overall near-term technical advantage.

Meantime,Nymex crude oil prices were higher and hit another three-year high of $64.77.The U.S. government is expected to rule on Friday whether it extends or waiveseconomic sanctions against Iran. The recent rally in oil prices has been apositive development for the raw commodity sector.

Technically,February goldd futures prices closed nearer the session high. The bulls have theoverall near-term technical advantage, amid a four-week-old uptrend in place onthe daily bar chart. Gold bulls' next upside near-term price breakout objectiveis to produce a close above solid technical resistance at $1,350.00. Bears'next near-term downside price breakout objective is pushing prices below solidtechnical support at $1,280.00. First resistance is seen at this week's high of$1,328.50 and then at $1,335.00. First support is seen at today's low of$1,316.10 and then at the $1,312.70. Wyckoff's Market Rating: 6.5

Marchsilver futures prices closed near mid-range. The bulls have the slight overallnear-term technical advantage, but need to show fresh power soon to keep it.Prices are still in a four-week-old uptrend on the daily bar chart, but nowjust barely. Silver bulls' next upside price breakout objective is closingprices above solid technical resistance at the October high of $17.59 an ounce.The next downside price breakout objective for the bears is closing pricesbelow solid support at the October low of $16.435. First resistance is seen attoday's high of $17.065 and then at $17.22. Next support is seen at today's lowof $16.88 and then at $16.75. Wyckoff's Market Rating: 5.5.

March N.Y. copper closed down 40 points at 323.15 cents today. Prices closed nearmid-range today. The copper bulls have the overall near-term technicaladvantage amid some recent, normal profit taking. Copper bulls' next upsideprice objective is pushing and closing prices above solid technical resistanceat 335.00 cents. The next downside price objective for the bears is closingprices below solid technical support at 310.00 cents. First resistance is seenat this week's high of 327.45 cents and then at 330.00 cents. First support isseen at today's low of 320.65 cents and then at 318.00 cents. Wyckoff's MarketRating: 7.0.

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.

Crypto market size continues to catch up with gold

Crypto stealing some of gold's thunder

Gold stocks drop on metal price decline

US a major market for Canadian mineral exports

Gold stocks down along with broad equities decline