Selling interest in gold was muted Thursday amid this week’s news regarding the European Union’s smaller countries’ sovereign debt problems.
Reports Wednesday said Standard & Poors downgraded Spain’s sovereign credit rating. The Spain news came on top of credit agency downgrades of the credit ratings of Greece and Portugal on Tuesday. The situation appeared to calm a bit Thursday amid no fresh news surfacing on the matter.
Heading into the weekend, don’t be surprised to see fresh buying interest in gold, or at least see any downside price pressure in gold limited by notions of some fresh developments regarding EU countries’ sovereign debt before trading resumes next Monday. Gold this week has once again been reasserted a safe-haven investment vehicle.
The London P.M. gold fixing was $1,166.75, compared to the previous P.M. fixing of $1,161.00.
Technically, June gold futures closed near mid-range Thursday. Gold bulls still have the solid near-term technical advantage. Prices are in an 11-week-old uptrend on the daily bar chart. Bulls’ next upside technical objective is to produce a close above psychological resistance at $1,200.00. Bears’ next downside price objective is closing prices below solid technical support at this week’s low of $1,146.60. First resistance is seen at Thursday’s high of $1,171.80 and then at this week’s high of $1,175.30. Support is seen at Thursday’s low of $1,162.20 and then at $1,155.00. Wyckoff’s Market Rating: 7.5.
May silver futures closed up 44.2 cents at $18.549 an ounce Thursday. Prices closed nearer the session high and hit a fresh three-week high. The key “outside markets” were in a bullish posture for silver Thursday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. Silver bulls have the overall near-term technical advantage and gained fresh upside technical momentum Thursday. Prices are in an 11-week-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of $17.49. Bulls’ next upside price objective is closing prices above solid technical resistance at the April high of $18.605 an ounce. First resistance is seen at Thursday’s high of $18.565 and then at $18.605. Next support is seen at $18.25 and then at Thursday’s low of $18.055. Wyckoff’s Market Rating: 7.0.
May N.Y. copper closed down 350 points at 333.35 cents Thursday. Prices closed nearer the session low, hit another fresh five-week low and scored a bearish “outside day” down on the daily bar chart. The key “outside markets” were in a bullish posture for copper Thursday, as the U.S. dollar index was lower, while crude oil and the U.S. stock indexes were higher. Yet, the copper market sold off anyway, which is a bearish clue for copper. The bears this week have gained fresh downside technical momentum. Prices are in a three-week-old downtrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at the March low of 329.00 cents. Bulls’ next upside objective is pushing and closing prices above solid technical resistance at this week’s high of 356.20 cents. First resistance is seen at 335.00 cents and then at 337.50 cents. First support is seen at Thursday’s low of 331.60 cents and then at 330.00 cents. Wyckoff’s Market Rating: 5.0.
By Jim Wyckoff, contributing to Kitco News; jim@jimwyckoff.com