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A.M. Kitco Metals Roundup: Comex Gold Hits New Record High; Silver Again Sharply Higher

(Kitco News) -Comex gold and silver futures prices are trading higher Friday morning, with gold hitting a new all-time record high and silver prices once again leading the way and posting sharper gains. June gold hit a new high of $1,541.00 an ounce as of this writing, while silver prices are again closing in on major psychological resistance at $50.00 an ounce. June gold last traded up $8.50 at $1,539.70. Spot gold last traded up $3.70 an ounce at $1,540.00. May Comex silver last traded up $1.51 at $49.03 an ounce.

Asian and London markets were closed Friday, which made for thinner market dealings worldwide.

The U.S. dollar index is weaker again Friday morning and is hovering near its fresh 2.5-year low. The still very weak overall technical posture of the U.S. dollar index remains a bullish factor for the precious metals markets. As long as the U.S. dollar index is trending lower, selling interest in the precious metals will be limited. The inverse trading relationship between the precious metals and the dollar index has become keener recently.

Crude oil prices are near steady Friday morning. The crude bulls still have some upside technical momentum as prices are closing in on the April high of $114.05 a barrel, basis the nearby June futures contract. The fact crude is trading above $112.00 a barrel is also an underlying bullish factor for the precious metals due to the inflationary implications.

While the world geopolitical picture has not seen any major fresh headline-grabbing developments this week, serious problems in the Middle East, Japan and the European Union have not just gone away. These situations are still driving safe-haven investment demand toward the precious metals markets.

U.S. economic data due for release Friday includes personal income and spending, the employment cost index, the ISM New York and Chicago reports, and the University of Michigan consumer sentiment survey.

There was no London A.M. gold fix Friday.

Technically, gold bulls remain in strong overall technical command. There are still no early technical warning signals that a market top is close at hand. For gold, unlike silver, the recent lack of high intra-day price volatility is bullish. Gold prices are in a three-month-old uptrend on the daily bar chart and in a 10-year-old uptrend on the longer-term monthly chart. Bulls' next near-term upside technical objective is to produce a close above resistance at $1,550.00. Bears' next near-term downside price objective is closing prices below solid technical support at this week's low of $1,492.00. First resistance is seen at $1,545.00 and then at $1,550.00. First support is seen at the overnight low of $1,532.10 and then at Thursday's low of $1,523.90.

May silver futures saw early-week price action produce a bearish buying "exhaustion tail" on the daily bar chart, whereby buying interest dried up at higher price levels. That was an early clue of a near-term market top being in place. However, silver prices have come roaring back to render moot that chart formation. Bulls have the solid overall near-term and longer-term technical advantage and have very quickly and impressively regained fresh upside near-term momentum. But the specter of the much higher daily price volatility in silver is not a bullish clue for the market and is still worrisome for the market bulls. A nearly three-month-old uptrend is in place on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid technical support at this week's low of $44.61. Bulls' next upside price objective is producing a close above solid technical resistance at Monday's contract high of $49.82 an ounce. First resistance is seen at Thursday's high of $49.52 and then at $49.82. Next support is seen at Friday's low of $48.10 and then at $47.50.

Not following me on Twitter? Then you have missed some important, exclusive dispatches from me this week, which came right amid intense market action. The precious markets will remain very active. If you want market analysis fast, then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff .

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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