(Kitco News) - Comex gold futures prices ended the day session modestly higher Monday. News reports of civil unrest in Bahrain did mildly support some fresh safe-haven buying interest in gold. However, a rebounding U.S. dollar index continues to limit the upside in gold. Comex April gold last traded up $3.60 at $1,364.00 an ounce. Spot gold last traded up $6.80 at $1,364.00.
The news reports regarding the Bahrain unrest came in morning trading, and gold immediately moved from trading modestly below unchanged to trading modestly higher and at the session high. However, specifics on the Bahrain situation were sketchy and at least temporarily faded to the background.
The U.S. dollar index traded firmer again Monday and hit a fresh three-week high. The Euro currency is seeing some selling pressure on renewed sovereign debt worries. European finance ministers are meeting early this week, and the markets will be watching closely for EU pronouncements regarding their debt problems.
With U.S. stock indexes hitting fresh multi-year highs Monday and with U.S. Treasury yields rising, investors worldwide are generally becoming more emboldened and seeking out riskier assets at the expense of safe-haven gold. This could change in a hurry if fresh, serious civil unrest develops in any Middle Eastern country.
Precious metals traders will also be closely examining Chinese inflation figures due out Tuesday morning. The commodity markets, including gold, have been sensitive to economic reports coming out of China in recent months, and especially inflation data.
Reports overnight said Asian demand for physical gold remains strong, and that is limiting selling pressure in the market.
The London P.M. gold fix was $1,365.00 versus the previous P.M. fixing of $1,364.00.
Technically, April gold futures prices closed nearer the session high Monday. The gold market bulls had gained fresh upside near-term technical momentum recently, and need to show some more power soon to keep it and to keep a three-week-old price uptrend in place on the daily bar chart. The gold market bulls have the overall near-term and longer-term technical advantage.
Gold market bulls' next near-term upside technical breakout objective is to produce a close above solid technical resistance at last week's high of $1,369.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at last week's low of $1,344.10. First resistance is seen at Monday's high of $1,367.50 and then at $1,369.70. First support is seen at Monday's low of $1,354.40 and then at $1,350.00. Wyckoff's Market Rating: 6.5.
March Comex silver futures closed up 62.5 cents at $30.62 an ounce Monday. Prices closed nearer the session high and hit a fresh six-week high. The bulls have the solid near-term technical advantage and gained still more upside technical momentum Monday.
Silver prices are in a steep three-week-old uptrend on the daily bar chart. The next downside price breakout objective for the bears is closing prices below solid technical support at $29.00. Bulls' next upside price breakout objective is producing a close above solid technical resistance at the January contract and 30-year high of $31.27 an ounce. First resistance is seen at Monday's high of $30.72 and then at $31.00. Next support is seen at $30.50 and then at $30.275. Wyckoff's Market Rating: 8.0.
March N.Y. copper closed up 955 points at 463.15 cents Monday. Prices closed near the session high and closed at a fresh contract and record high close Monday. The copper bulls have the solid near-term technical advantage and regained fresh upside momentum Monday. Bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 475.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at last week's low of 454.35 cents. First resistance is seen at last week's all-time high of 463.75 cents and then at 465.00. First support is seen at 460.00 cents and then at 457.50 cents. Wyckoff's Market Rating: 9.0.
By Jim Wyckoff of Kitco News; email@example.com