After hitting nearly three-week highs in earlier U.S. trading Thursday, gold prices are slightly higher and have backed down from their session highs on reports that an Israel-Hamas ceasefire may be close at hand, although this has not been confirmed. The safe-haven buying is supporting gold, as well as bullish daily outside market forces that include a weaker U.S. dollar index and a dip in U.S. Treasury yields. April gold futures were last up $5.20 at $2,072.90, while March silver was last up $0.076 at $23.24.
Traders and investors are also keeping in mind the fact that the U.S. is set to retaliate against Iran-backed Houthi rebels for killing three U.S. soldiers and wounding many more. This is leading to safe-haven buying in gold amid concerns about geopolitical tensions.
Additionally, the Federal Reserve’s Open Market Committee meeting concluded Wednesday afternoon, leaning slightly hawkish. The monetary policy doves were hoping for a March FOMC rate cut, but many now see the earliest rate cut coming in June. Traders are now focusing on Friday morning’s monthly U.S. jobs report, which is expected to show a rise in non-farm payrolls, compared to the December report. U.S. stock index futures were higher in midday trading, rebounding from Wednesday’s FOMC-induced sell off.
Technically, April gold futures prices hit a nearly three-week high today. The bulls have the overall near-term technical advantage, with the next upside price objective at $2,100.00. Bears’ next near-term downside price objective is pushing futures prices below $2,000.00. March silver futures bears have the overall near-term technical advantage, with the next downside price objective for the bears at the October low of $21.17. The copper market is slightly bullish, with the next upside price objective at 397.40 cents.
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As always, we must remember that the views expressed in the article, as well as those of the author, do not necessarily reflect those of Kitco Metals Inc. While every effort has been made to ensure the accuracy of the information provided, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is intended for informational purposes only, and should not be construed as a solicitation to make any exchange in commodities, securities, or other financial instruments. Kitco Metals Inc. and the author do not accept responsibility for losses or damages arising from the use of this publication.
