(Kitco News) -Comex April gold futures prices are trading modestly higher and hovering near a three-month high in early U.S. dealings Thursday. The precious yellow metal is boosted by fresh safe-haven investment demand and on fresh upside near-term technical momentum gained by the bulls this week. The key “outside markets” are also in a mildly bullish daily posture for the precious metals so far Thursday, as the U.S. dollar index is lower and crude oil prices are steady to firmer. April gold last traded up $5.70 at $1,777.10 an ounce. Spot gold was last quoted down $0.10 an ounce at $1,776.25. March Comex silver last traded up $0.291 at $34.55 an ounce.
The gold market is seeing fresh support from the present stare-down between allies Israel and the U.S, and Iran. The recent news Iran has halted oil shipments to some European countries, to pre-empt an EU ban on Iranian oil imports, has been met with increasing focus in the media on the potential for Israel or U.S. military action against Iran. The rising tensions between Israel and the West, and Iran, are and likely will remain a major bullish fundamental factor for the safe-haven gold market.
The Mid-East tensions have pushed the European Union sovereign debt crisis to the back burner this week. Strong German Ifo survey results Thursday have lifted the Euro currency. However, the German data was muted by news the European Commission expects EU, as a whole, to slip back into economic recession this year.
The U.S. dollar index is lower Thursday morning, which is a positive for the precious metals. Trading in the dollar index has turned choppy and trendless just recently. Meantime, Nymex crude oil futures prices are trading slightly higher after hitting a 9.5-month high on Wednesday. The recent rally in crude oil prices is also a major bullish factor for the precious metals. Crude oil and the U.S. dollar index will remain the two key “outside markets” that will generally have at least some daily influence on gold and silver price moves.
U.S. economic data due for release Thursday include the weekly jobless claims report and the weekly DOE energy stocks report. There is also an IMF press briefing.
The London A.M. gold fixing was $1,776.50 versus the previous London P.M. fixing of $1,752.00.
Technically, April gold futures prices Wednesday hit a fresh three-month high. Price action Wednesday saw the market move above what was stiff overhead technical resistance at the February high, which has given the bulls still more upside near-term technical momentum. Gold bulls have the solid overall near-term technical advantage. Bulls' next upside technical breakout objective is to produce a close above psychological resistance at $1,800.00. Bears' next near-term downside price objective is closing prices below solid technical support at the February low of $1,706.70. First resistance is seen at Wednesday’s high of $1,783.40 and then at $1,800.00. First support is seen at $1,765.90 and then at Wednesday’s low of $1,750.70.
March silver futures hit a fresh three-month high overnight. Silver bulls have the overall near-term technical advantage and gained fresh upside momentum Thursday. Prices are in a seven-week-old uptrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above psychological resistance at $35.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the February low of $32.64. First resistance is seen at the overnight high of $34.75 and then at $35.00. Next support is seen at the overnight low of $34.23 and then at $34.00.
Source; http://www.kitco.com/reports/KitcoNews20120223JW_AM.html
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