Gold sees solid gains on technical buying

(Kitco News, Wed. March 27th, 2024) – Gold prices are posting double-digit gains in midday U.S. trading Wednesday, supported by a fully bullish technical posture that is prompting chart-based speculators to play the long side of the market. Silver prices are slightly up. April gold was last up $13.80 at $2,191.10. May silver was last up $0.087 at $24.71.

It was a quieter trading affair at mid-week. However, it’s a very busy U.S. data release schedule Thursday, including U.S. Q4 GDP data as well as a major USDA crop planting intentions report. U.S. markets are closed Friday for the Good Friday holiday but personal income and outlays, including PCE inflation data, will be released that day.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are mixed at midday.

The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil prices are a bit weaker and trading around $81.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently fetching around 4.2%.

Technically, April gold futures bulls have the solid overall near-term technical advantage. A five-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the contract and record high of $2,225.30. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $2,149.20. First resistance is seen at $2,203.00 and then at the contract high of $2,225.30. First support is seen today’s low of $2,172.10 and then at at this week’s low of $2,164.40.

May silver futures prices hit a two-week low today. The silver bulls have the overall near-term technical advantage but are fading a bit. Silver bulls’ next upside price objective is closing prices above solid technical resistance at the March high of $25.975. The next downside price objective for the bears is closing prices below solid support at $23.50. First resistance is seen at this week’s high of $25.055 and then at $25.50. Next support is seen at today’s low of $24.445 and then at $24.22.

May N.Y. copper closed down 90 points at 399.95 cents today. Prices closed nearer the session high. The copper bulls have the overall near-term technical advantage but appear tired. Prices are in a six-week-old uptrend on the daily bar chart, but now just barely. Copper bulls’ next upside price objective is pushing and closing prices above solid technical resistance at the March high of 416.40 cents. The next downside price objective for the bears is closing prices below solid technical support at

385.00 cents. First resistance is seen at this week’s high of 404.70 cents and then at 406.65 cents. First support is seen at today’s low of 396.75 cents and then at 392.50 cents.

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com