(Kitco News) -Comex February gold futures prices are trading near steady in early U.S. trading Thursday. The market is pausing and consolidating this week’s solid gains, and in the wake of the surprise move by the major central banks of the world to increase liquidity in the financial markets. The general market place has stabilized this week, which is a bullish factor for the gold market, which has been trading in sync with the general raw commodity sector recently. February gold last traded up $1.90 at $1,752.20 an ounce. Spot gold last traded down $1.40 an ounce at $1,748.50. March Comex silver last traded up $0.426 at $33.23 an ounce.
The unexpected collective move by the U.S. Federal Reserve, the European Central Bank, the Bank of Japan, the Bank of Canada and the Swiss National Bank were bullish for risk assets as the U.S. and European stock markets, and most commodity markets, rallied on the news. Earlier Wednesday China announced it was also lowering its reserve requirement ratio for banks, which in effect also eased China’s monetary policy.
There is speculation the surprise move by the world’s central banks was implemented because a major bank was near failure. While the markets rallied on the increased liquidity measures, the structural problems of the European Union have not just gone away. A Spanish bond auction Thursday did receive decent demand, but at higher yields. If history repeats itself, the EU crisis will once again roil the market place. While gold has not recently seen fresh safe-haven investment demand due to the EU debt crisis, my bias is that a serious escalation in the crisis, such as the EU starting to break up, would see good safe-haven demand come back into the gold market.
The U.S. dollar index was trading weaker Thursday and the greenback bulls are fading a bit and need to show fresh power soon to keep the uptrend in place on the daily chart. The dollar index bulls do still have the overall near-term technical advantage. Crude oil prices are trading near steady Thursday morning. However, crude oil bulls have gained fresh upside technical momentum this week, which is bullish for the precious metals and other commodity markets.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the ISM manufacturing report, construction spending and domestic auto sales. The big report of the week is Friday’s U.S. jobs report.
The London A.M. gold fixing was $1,750.00 versus the previous P.M. fixing of $1,746.00.
Technically, February gold futures bulls have regained upside momentum this week, including producing a bullish “outside day” up on the daily bar chart Wednesday. A nine-week-old uptrend on the daily bar chart has also been re-established. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at $1,775.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at the overnight high of $1,758.00 and then at $1,775.00. First support is seen at the overnight low of $1,744.20 and then at $1,725.00.
March silver futures prices hit a two-week high overnight and the bulls have regained upside technical momentum this week. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $35.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of $30.74. First resistance is seen at $33.50 and then at $34.00. Next support is seen at $33.00 and then at the overnight low of $32.53.
Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff.
The unexpected collective move by the U.S. Federal Reserve, the European Central Bank, the Bank of Japan, the Bank of Canada and the Swiss National Bank were bullish for risk assets as the U.S. and European stock markets, and most commodity markets, rallied on the news. Earlier Wednesday China announced it was also lowering its reserve requirement ratio for banks, which in effect also eased China’s monetary policy.
There is speculation the surprise move by the world’s central banks was implemented because a major bank was near failure. While the markets rallied on the increased liquidity measures, the structural problems of the European Union have not just gone away. A Spanish bond auction Thursday did receive decent demand, but at higher yields. If history repeats itself, the EU crisis will once again roil the market place. While gold has not recently seen fresh safe-haven investment demand due to the EU debt crisis, my bias is that a serious escalation in the crisis, such as the EU starting to break up, would see good safe-haven demand come back into the gold market.
The U.S. dollar index was trading weaker Thursday and the greenback bulls are fading a bit and need to show fresh power soon to keep the uptrend in place on the daily chart. The dollar index bulls do still have the overall near-term technical advantage. Crude oil prices are trading near steady Thursday morning. However, crude oil bulls have gained fresh upside technical momentum this week, which is bullish for the precious metals and other commodity markets.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the ISM manufacturing report, construction spending and domestic auto sales. The big report of the week is Friday’s U.S. jobs report.
The London A.M. gold fixing was $1,750.00 versus the previous P.M. fixing of $1,746.00.
Technically, February gold futures bulls have regained upside momentum this week, including producing a bullish “outside day” up on the daily bar chart Wednesday. A nine-week-old uptrend on the daily bar chart has also been re-established. Bulls' next upside technical breakout objective is to produce a close above solid technical resistance at $1,775.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at the overnight high of $1,758.00 and then at $1,775.00. First support is seen at the overnight low of $1,744.20 and then at $1,725.00.
March silver futures prices hit a two-week high overnight and the bulls have regained upside technical momentum this week. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $35.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the November low of $30.74. First resistance is seen at $33.50 and then at $34.00. Next support is seen at $33.00 and then at the overnight low of $32.53.
Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff.
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