Capital Gold Group Report: Gold Ends Higher, Hits 4-Week High Despite Stronger U.S. Dollar
By Jim Wyckoff
6 April 2010, 2:08 p.m.
Fresh speculative buying interest, including a "buy-the-dip" mentality, boosted the gold market Tuesday, as prices hit a fresh four-week high. June Comex gold futures closed up $2.20 at $1,136.00 Tuesday. Gold prices rallied Tuesday despite a stronger U.S. dollar index, which is another bullish clue for the precious yellow metal.
Some fresh worries about Greece meeting its debt obligations sunk the Euro currency, which in turn prompted some fresh safe-haven buying of gold from European traders. Yields on Greek government bonds hit 7.1% Tuesday (up over 0.5% from Monday and 4% above German bond yields) on reports Greece may be trying to renegotiate terms of a debt-rescue deal reached just late last month.
London traders said the physical gold market also continues to see underlying buying support from investors in India and Asia.
Metals traders will closely scrutinize Tuesday afternoon's release of the latest FOMC minutes from the Federal Reserve. Recent stronger U.S. economic data has given rise to ideas of the Fed raising interest rates sooner rather than later.
Technically, June gold futures prices Tuesday pushed above what was solid technical resistance at the $1,135.00 level, which provided bulls with more upside momentum. Bulls have the near-term technical advantage. Bulls' next upside technical objective is to produce a close above solid technical resistance at the March high of $1,146.60. Bears' next downside price objective is closing prices below solid technical support at $1,100.00. First resistance is seen at Tuesday's high of $1,139.60 and then at $1,146.60. Support is seen at Tuesday's low of $1,123.50 and then at $1,112.00. Wyckoff's Market Rating: 6.0.
May silver futures closed down 17.8 cents at $17.94 an ounce Tuesday. Prices closed near mid-range and saw profit-taking pressure after prices hit another fresh 2.5-month high early on. The key "outside markets" were in a mostly bearish posture for silver Tuesday, as the U.S. dollar index was higher, while crude oil and U.S. stock index futures prices were steady to weaker. Silver bulls still have the near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at $17.00. Bulls' next upside price objective is closing prices above solid technical resistance at the January high of $18.90 an ounce. First resistance is seen at this week's high of $18.145 and then at $18.25. Next support is seen at this week's low of $17.81 and then at $17.665.
Capital Gold Group, gold group, gold, gold prices, gold news, gold coins, gold bullion, gold IRA, IRA gold
