Gold, Silver Prices Up On Technical Buying

(Kitco News) - Gold andsilver prices are higher in early U.S. trading Wednesday. Silver prices havehit a 2.5-month high and are trading above $17.00. The chart postures for bothmetals are tilted in favor of the bulls, which is inspiring technically basedbuying interest at mid-week. June Comex gold futures were last up $6.10 anounce at $1,355.50. May Comex silver was last up $0.283 at $17.08 an ounce.

Worldstock markets were mostly higher again overnight. U.S. stock indexes are also pointedtoward higher openings when the New York day session begins. Strongfirst-quarter corporate earnings reports are driving the bulls this week, whilegeopolitics has taken a back seat, for now. Risk appetite is keen so far thisweek.

Theability of gold and silver to post price gains today, amid little risk aversionin the marketplace, is impressive.

Inovernight news, China effectively slightly eased its monetary policy Wednesdayby lowering the reserve requirement ratio for its banks.

TheEuro zone consumer price index for March was reported up 1.0% from February andup 1.3%, year-on-year. Those numbers were very close to market expectations.

Thekey “outside markets” on Wednesday morning see the U.S. dollar index trading slightlyhigher. Nymex crude oil prices are also higher and trading well above $67.00 abarrel.

U.S.economic data due for release Wednesday includes the weekly MBA mortgage applicationssurvey, the Federal Reserve’s beige book, and the weekly DOE liquid energystocks report.

Technically,June gold bulls have the firm overall near-term technical advantage. Goldbulls' next upside near-term price breakout objective is to produce a closeabove solid technical resistance at the January high of $1,375.50. Bears' nextnear-term downside price breakout objective is pushing prices below solidtechnical support at the March low of $1,309.30. First resistance is seen at $1,362.60and then at the April high of $1,356.60. First support is seen at the overnightlow of $1,345.00 and then at $1,340.00. Wyckoff's Market Rating: 6.5

Maysilver futures bulls have gained the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at the January high of $17.785 an ounce. The nextdownside price breakout objective for the bears is closing prices below solidsupport at $16.50. First resistance is seen at $17.25 and then at $17.50. Nextsupport is seen at $17.00 and then at the overnight low of $16.73. 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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