Comex Gold rallies to 4-week high; Silver hits fresh 30-year high

(Kitco News) - Comex gold futures prices ended higher and hit a fresh four-week high Thursday, on safe-haven investment demand due to Middle East tensions. Meantime, Comex silver futures rallied to a new 30-year high on building bullish technical momentum. Comex April gold last traded up $9.20 at $1,384.30 an ounce. Spot gold last traded up $8.30 at $1,384.50.
Gold prices were boosted Thursday from safe-haven demand due to fresh Middle East tensions that include civil unrest in Bahrain and Libya. Also, Iran has reportedly sent two war ships to the Mediterranean Sea, much to the chagrin of Israel. In the background also are ongoing worries regarding the European Union's sovereign debt situation. News reports Thursday said EU officials are pressuring Portugal to accept a financial bailout from the EU.
The U.S. dollar index traded weaker Thursday morning and also provided upside support to the precious metals markets.
Precious metals market bulls are also encouraged by recent consumer inflation data from major countries, including the U.S., which has raised the specter of inflationary price pressures becoming problematic. Raw commodity price inflation is already at the forefront as the Continuous Commodity Index, which is a basket of 17 major raw commodity futures prices rolled into one composite index price, this week hit a fresh all-time record high. Inflationary price pressures are an underlying bullish factor for the precious metals.
The London P.M. gold fix was $1,379.00 versus the previous P.M. fixing of $1,371.25.
Technically, April Comex gold futures prices closed near the session high Thursday and hit another fresh four-week high. The gold market bulls this week have gained upside near-term technical momentum. A three-week-old price uptrend is in place on the daily bar chart. The gold market bulls have the overall near-term and longer-term technical advantage.
Bulls' next near-term upside technical breakout objective is to produce a close above solid technical resistance at $1,394.70. Bears' next near-term downside price breakout objective is closing prices below solid technical support at this week's low of $1,354.40. First resistance is seen at $1,390.00 and then at $1,394.70. First support is seen at Thursday's low of $1,374.60 and then at Wednesday's low of $1,368.30. Wyckoff's Market Rating: 7.0.
March silver futures closed up 91.1 cents at $31.54 an ounce Thursday. Prices notched a fresh 30-year high of $31.585 an ounce, as of this writing, as bulls have the strong overall near-term and longer-term technical advantage and upside technical momentum is building. A weaker U.S. dollar index Thursday also supported buying interest in the precious metals.
Silver futures prices are in a three-week-old uptrend on the daily chart and in a nearly 2.5-year-old uptrend on the longer-term monthly chart. The powerful silver market bulls' next upside price objective is producing a close above major resistance at $35.00 an ounce. Importantly, now look for daily price moves in silver to become larger and daily volatility higher in the near term.
The next downside price breakout objective for the silver bears is closing March futures prices below strong technical support at $30.00. It would take multiple daily closes below strong technical support at $28.00 an ounce in March silver futures to produce significant near-term technical damage to then suggest a near-term market top is in place. First resistance is seen at Thursday's contract high of $31.585 and then at $32.00. Next support is seen at $31.00 and then at Thursday's low of $30.535. Wyckoff's Market Rating: 9.0.
March N.Y. copper closed up 210 points at 449.10 cents Thursday. Prices closed nearer the session high on a corrective bounce after hitting a fresh three-week low early on. A bearish "key reversal" down was confirmed on the daily chart this week, which is one early technical clue that a near-term market top is in place.
Recent price action has also formed a rare and bearish broadening pattern. Bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week's all-time high of 464.95 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at 435.00 cents. First resistance is seen at Thursday's high of 451.70 cents and then at 452.50. First support is seen at 446.15 cents and then at 445.00 cents. Wyckoff's Market Rating: 7.0.

(Source: http://www.commodityonline.com/news/Comex-Gold-rallies-to-4-week-high;-Silver-hits-fresh-30-year-high-36559-3-1.html)