Gold and silver prices are firmly higher in early US trading on Thursday, lifted in part by the US dollar index that is selling off again today. The ideas of more accommodative global monetary policies amid slowing world economic growth remain supportive elements for the safe-haven metals
The spot gold prices are up by 8.65 USD, or 0.65%, to 1,336.95 USD per ounce at 09:15 a.m. ET. August gold Comex futures were last up 8.50 USD per ounce, or 0.65%, to 1,342.10 USD per ounce, while the July futures are up by 8.90 USD per ounce to 1,339.30 USD.
European stock indexes were mostly firmer overnight, while Asian shares were mostly weaker. The US stock indexes are pointed toward higher openings when the New York day session begins.
Meanwhile, the European Central Banks left interest rates unchanged at its regular monetary policy meeting that just concluded. The ECB did extend the length of time that bank officials expect rates to remain at current levels. The interest rate on the main refinancing operations and the rates on the marginal lending facility and the deposit facility will remain at 0.00%, 0.25% and minus 0.40%, respectively. As usual, traders are closely monitoring ECB President Mario Draghi’s remarks at his press conference.
In the longer run, gold is going to sustain this bull run. We are looking at the shift in the Fed policy. The Fed’s dovish signal will obviously boost gold prices and weaken the US dollar. The investors booked some profits after gold prices surged around 70 USD in the past five sessions. Greater financial market volatility or increase in the trade or geopolitical risks may stoke safe-haven demand, especially if gold is also rallying.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.3% to 757.59 tonnes on Wednesday from Tuesday.
In other precious metals, silver gained 0.5% to 14.88 per ounce after touching a more than one-month high of 15.04 USD in the previous session. The analysts still look for silver to gain and forecast an average price of 15.27 USD for 2019 with a range of 13.90-16.45 USD, suggesting the market is bottoming.
Palladium rose by 0.8% to 1,339.03 USD per ounce, while platinum climbed 1.1% to 807.40 USD, having hit a near three-week high at 832.63 USD on Wednesday.
Gold price analysis
Technically, the gold bulls have the firm overall near-term technical advantage. The bulls’ next upside price objective is to produce a close in June futures above solid resistance at the February high of 1,361.50 USD. First resistance is seen at this week’s high of 1,348.90 USD and then at 1,361.50 USD.
The bears’ next near-term downside price breakout objective is pushing August futures prices below solid technical support at 1,325.00 USD. First support is seen at 1,335.70 USD and then at the overnight low of 1,331.30 USD.
Silver price analysis
July silver futures bears still have the slight overall near-term technical advantage. However, in a three-month-old downtrend on the daily bar chart has been negated to suggest a market bottom is in place.
Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at 15.40 USD per ounce. The next downside price breakout objective for the bears is closing prices below solid support at 14.50 USD.
First resistance is seen at this week’s high of 15.04 USD and then at 15.12 USD. Next support is seen at the overnight low of 14.73 USD and then at this week’s low of 14.565 USD.