Gold prices witnessed a sharp uptick in midday U.S. trading on Thursday, nearing daily highs and edging closer to recent record levels. Concurrently, silver prices posted modest gains, buoyed by increased technical buying and bullish chart patterns.
Gold Price Movement
Market Performance June gold exhibited notable strength, climbing $27.10 to reach $2,239.90 per ounce. Similarly, May silver saw an uptick of $0.198, closing at $24.95 per ounce. The surge in prices comes amidst robust technical indicators and bullish market sentiment.
U.S. Data Releases Despite a flurry of U.S. data releases on Thursday, markets remained largely unfazed, with no significant surprises triggering notable market reactions. Notably, U.S. markets will be closed on Friday for the Good Friday holiday, although personal income and outlays data, including PCE inflation figures, will still be released.
Technical Chart Perspective Today marks the final U.S. trading day of the week, month, and quarter, carrying substantial significance for technical chart analysis. Gold is poised to conclude the day with a bullish weekly, monthly, and quarterly high close, alongside a record high close in futures markets.
Market Dynamics U.S. stock indexes exhibited a mixed performance at midday, with ongoing incremental gains bringing them close to recent record highs. Federal Reserve Governor Christopher Waller’s comments on Wednesday regarding U.S. inflation data and rate cut expectations also influenced market sentiment.
Key Outside Markets The U.S. dollar index experienced marginal gains, albeit retracing from daily highs. Nymex crude oil prices trended higher, hovering around $82.75 per barrel. Additionally, the yield on the 10-year U.S. Treasury note remained steady at approximately 4.2%.
Technical Analysis
Gold Futures Gold futures maintain a solid near-term technical advantage, supported by a five-week uptrend on the daily bar chart. Upside price objectives include surpassing resistance at the contract high of $2,246.60, while downside support resides at last week’s low of $2,170.80.
Silver Futures Silver futures retain the overall near-term technical advantage, albeit experiencing recent fluctuations. Upside price objectives include closing above resistance at last week’s high of $25.975, with support seen at this week’s low of $24.445.
Conclusion In conclusion, gold prices exhibit robust momentum, propelled by bullish technical indicators and market sentiment. While uncertainties persist in U.S. data releases and external market dynamics, the precious metal remains poised for further gains. Vigilance in monitoring technical levels and market developments remains imperative for investors navigating the current landscape.
