Gold Prices Gain As U.S. Stock Market Stumbles

(Kitco News) - Gold prices wereending the U.S. day session with moderate gains Thursday. Another big sell offin the U.S. stock market prompted safe-haven demand in both gold and silvermarkets. Bargain hunters also stepped into both markets after they had droppedto multi-week lows early on today. April Comex gold futures were last up $4.80an ounce at $1,319.40. March Comex silver was last up $0.092 at $16.33 anounce.

TheU.S. dollar index backed off from its good rally this week, which was alsosupportive to the precious metals markets. Charts are hinting that thegreenback has put in a near-term market bottom.

Theother key outside market saw Nymex crude oil prices slumping again today andhitting a five-week low. Technicals are suggesting crude has put in a markettop and that's not bullish for the metals or the rest of the raw commoditysector.

Seriousnear-term technical damage has been inflicted on the U.S. stock indexesrecently, to suggest they have finally topped out for at least the near term.Look for continued higher volatility in equities in the coming days. Many goldand silver market bulls have been frustrated their metals have not seen keenersafe-haven demand amid the global stock market sell-offs. Still, if indeed theU.S. stock indexes have put in major tops (which the charts suggest is thecase) then gold and silver markets will be at least a long-term beneficiary, ifnot even starting to appreciate soon. Money flowing out of stocks will belooking for a home, and gold and silver are likely to see their share of newmoney flows.

Technically,Aprilgold futures prices closed the day session nearer the session high today.The gold bulls have the slight overall near-term technical advantage, but needto show more power soon to keep it. Gold bulls' next upside near-term pricebreakout objective is to produce a close above solid technical resistance at$1,350.00. Bears' next near-term downside price breakout objective is pushingprices below solid technical support at $1,300.00. First resistance is seen at$1,325.00 and then at Wednesday's high of $1,334.80. First support is seen attoday's low of $1,309.00 and then at $1,300.00. Wyckoff's Market Rating: 5.5

Marchsilver futures prices closed nearer the session high today after hitting asix-week low early on. Short covering and bargain hunting were featured. Thesilver bears still have the firm 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 the Decemberlow of $15.635. First resistance is seen at $16.50 and then at Wednesday's highof $16.73. Next support is seen at today's low of $16.19 and then at $16.00.Wyckoff's Market Rating: 3.0.

March N.Y. copper closed down 110 points at 308.55 cents today. Prices closed nearmid-range and hit another seven-week low today. The copper bulls still have theoverall near-term technical advantage but are fading to suggest a market top isin place. Copper bulls' next upside price objective is pushing and closingprices above solid technical resistance at this week's high of 325.75 cents.The next downside price objective for the bears is closing prices below solidtechnical support at 300.00 cents. First resistance is seen at today's high of311.90 cents and then at 315.00 cents. First support is seen at today's low of306.15 cents and then at 305.0 cents. Wyckoff's Market 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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