Gold, Silver Firmer And Holding This Week's Solid Gains

(Kitco News) – Gold and silver prices are modestly higher in early U.S. trading Friday. This week’s price action in the precious metals has revived the bulls and given them technical momentum. Bullish weekly high closes on Friday would suggest still more gains to come next week. April Comex gold was last up $2.70 an ounce at $1,229.80. May Comex silver was last up $0.035 at $17.36 an ounce.

The marketplace is intently monitoring the Group of 20 finance ministers meeting in Germany that is taking place through the weekend. The specter of currency wars breaking out has become more plausible with the new U.S. Trump administration and its accusations that several major countries are currency manipulators.

U.S. President Trump meets German Chancellor Merkel at the White House Friday.

The key outside markets on Friday morning see the U.S. dollar index trading slightly higher on a tepid short-covering bounce. The greenback bulls have faded badly this week, to suggest the dollar index has put in a near-term market top. Meantime, Nymex crude oil prices are slightly higher today on a corrective and short-covering bounce after hitting a four-month low on Tuesday. The crude oil bears appear to be exhausted after recent strong selling pressure, which hints at a near-term market bottom being in place.

U.S. economic data due for release Friday includes industrial production and capacity utilization, leading economic indicators and the University of Michigan consumer sentiment survey.

(Note: Follow me on Twitter–@jimwyckoff–for breaking market news.)

Live 24 hours gold chart [Kitco Inc.]

Technically, April gold futures bears still have the overall near-term technical advantage, but the bulls have momentum on their side. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears’ next near-term downside price breakout objective is closing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,234.00 and then at $1,240.00. First support is seen at the overnight low of $1,224.00 and then at $1,218.10. Wyckoff’s Market Rating: 4.0

Live 24 hours silver chart [ Kitco Inc. ]

May silver bears also still have the overall near-term technical advantage, but the bulls have momentum on their side. Silver bulls’ next upside price breakout objective is closing futures prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $16.50. First resistance is seen at this week’s high of $17.585 and then at $17.82. Next support is seen at the overnight low of $17.23 and then at $17.00. Wyckoff’s Market Rating: 4.0.