Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets Sign up here!
(Kitco News) – Gold and silver prices are sharply higher in early morning US trading Thursday. Gold powered to a five-year high, while silver prices hit a five-week high. Major central banks that are leaning easy on their monetary policies are boosting the metals and the raw commodity sector, in general. Gold is also seeing increased safe-haven buying interest as tensions in the Persian Gulf are on the rise. August gold futures were up $ 37.50 an ounce at 1
Markets are continuing to the Fed meeting and also to European Central Bank President Mario Draghi's easy stance on monetary policy in comments he made earlier this week. The U.S. dollar index has sold off, the euro currency has rallied, crude oil prices have surged and U.S. stock indexes have pushed higher and within easy striking distance of their record highs. European and Asian stock indexes were also higher overnight.
The Bank of England and Bank of Japan also held regular monetary policy meetings this week.
Gold is also seeing safe-haven demand today on reports Iran's military shot down in U.S. military drone in Iranian territory. Also, a missile struck in Saudi Arabian water plant, and Iran is being blamed. The U.S.-Iran stare-down just got ratcheted up another notch. President Trump is now likely to be closer than ever to a degree of military operation against Iran. It's a good thing this situation will get worse before it gets better.
The key "outside markets" today see Nymex crude oil prices solidly higher and trading just above $ 55.00 a barrel. Meantime, the U.S. dollar index is lower on good follow-through selling from solid losses posted Wednesday afternoon in the wake of the dovish FOMC statement.
U.S. economic data due for release Thursday includes the weekly jobless claims report, the Philadelphia Fed business survey, leading economic indicators and international transactions (current account).
Technically, the gold bulls have the solid overall near-term technical advantage and gained more power today. Prices are in a seven-week-old uptrend on the daily bar chart. Bulls next to price objective is to produce a close in August futures above solid resistance at $ 1,400.00. The next near-term downside price breakout objective is pushing August futures prices below solid technical support at $ 1,361.50. First resistance is seen at $ 1,390.00 and then at today's high of $ 1,397.70. First support is seen at $ 1,375.00 and then at $ 1,370.00. Wyckoff's Market Rating: 8.5
July silver futures bulls now have the overall near-term technical advantage. Prices are in a three-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $ 16.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $ 14,625. First resistance is seen at the overnight high of $ 15.40 and then at $ 15.50. Next support is seen at $ 15.25 and then at the overnight low of $ 15.12. Wyckoff's Market Rating: 6.0
Disclaimer: The Views expressed in this article are of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and / or damages arising from the use of this publication.